Takeover offer for Hwang Capital turns unconditional, acceptances period extended

KUALA LUMPUR: Hwang Capital (M) Bhd (HCM) chairman Hwang Lip Teik and the company which he controls, Hwang Enterprises Sdn Bhd (HESB), have extended the closing date of their takever offer for the remaining HCM shares to July 21 after their offer turned unconditional.

On behalf of the joint offerors, Affin Hwang Investment Bank (Affin Hwang IB) said in a statement that they had received valid acceptances that boosted their holding to 55.52% of HCM shares as at July 1 (three days prior to the first closing date). With them holding more than 50% of the shares, their offer is now unconditional.

At the date of the posting of the offer document on June 13, the offerors held 30.59% of HCM’s paid-up capital. So far they have received acceptances representing a 24.93% stake.

With the valid acceptances and DBS Group Holdings Ltd holding 27.67%, HCM’s public shareholding spread has narrowed to 16.81% -- below the threshold of 25% required to maintain the listing status.

Hwang and HESB have announced that they intended to take HCM private.

Hwang, who helms HCM’s money lending and credit financing arm HDM Capital Sdn Bhd (as its executive chairman), made a cash offer of RM2.65 per share for the remaining shares he and HESB did not already own in HCM. Independent adviser RHB Investment Bank deemed this offer “not fair but reasonable” but recommended that shareholders take it.

Affin Hwang IB said on Friday that other than the extended closing date, all other details, terms and conditions of the offer, as set out in the offer document, remained unchanged, 

The Hwang family patriarch and founder of Hwang-DBS (M) Bhd, Datuk Seri Hwang Sing Lue, passed away in 2012 at age 83. Since his passing, the Hwang family had undertaken a series of deals to dispose of its banking interests. 

Lip Teik, 59, is the son of the patriarch.

HCM shares gained 1 sen to close at RM2.61 on Friday.