Japanese firm gains over 90% stake in Maypak after revising offer price

KUALA LUMPUR: Japan’s Taisei Lamick Co Ltd (TLC), which raised its offer price for Malaysia Packaging Industry Bhd (Maypak) shares after an independent adviser urged shareholders to reject its earlier offer, has managed to cross the 90% shareholding threshold required to take Kuala Lumpur-based company private.

RHB Investment Bnk Bhd, on behalf of TLC, said in a statement that TLC had secured complete and valid acceptances of 30.33% and acceptances of 3.58% that were subject to verification, which raised TLC’s shareholding in Maypak to 90.81% as at 5pm on the closing date (Monday).

The Tokyo-listed film packaging materials manufacturer, as highlighted in its offer document, plans to file an application to withdraw Maypak’s listing status.

To recap, TLC, having bought a 54.95% stake of Maypak, launched in September its mandatory takeover bid for the remaining shares it did not own in the loss-making packaging material company with a 65-sen-a-share offer. 

However, Mercury Securities Sdn Bhd, the independent adviser for the proposed takeover, advised minority shareholders to reject TLC’s offer, which it deemed to be “reasonable but not fair.”

It said the offer price represented a significant discount of 63% over Maypak’s estimated realisable net asset value of RM1.76.

Subsequently (on Oct 31) TLC raised its offer to RM1.

Following this, Mercury Securities changed its advice to the shareholders, this time recommending that they accept the revised offer as the “reasonable” view outweighed the “not fair” view.