KUALA LUMPUR: Goh Ban Huat Bhd’s (GBH) single-biggest shareholder, Tan Sri Tan Hua Choon, has made a takeover offer for the remaining 69.5% stake he does not own in the ceramics product manufacturer at RM1.25 per share.
The offer price represents a 19% premium over yesterday’s price of RM1.05 before the stock was suspended. The shares will resume trading today. GBH has a market capitalisation of RM65mil. Its share price has dropped 4.5% year-to-date.
Businessman Tan, who currently owns 30.5% of GBH, is also a shareholder of Keladi Maju Bhd, Malaysia Aica Bhd, FCW Holdings Bhd, Marco Holdings Bhd, Jasa Kita Bhd, GPA Holdings Bhd and PDZ Holdings Bhd.
Tan planned to maintain the listing status of GBH after the takeover and keep more than 50% stake in the company, said CIMB Investment Bank, which is acting on behalf of Tan, in a filing with Bursa Malaysia yesterday.
The offeror would “use commercially reasonable endeavours to rectify the shortfall in the public shareholding spread,” the bank added.
The proposal is subject to approvals from the Securities Commission and the International Trade and Industry Ministry.
GBH, plagued by the economic downturn, made a net loss of RM2.4mil for first quarter ended March 31 compared with losses of RM3.5mil in the previous corresponding period. Revenue declined to RM8.8mil in the first quarter from RM9.1mil a year ago.
The company has indicated that the ceramics building materials industry remained difficult and challenging due to intense competition from products imported from cheaper cost manufacturing countries.
To mitigate the impact, it is focusing on making higher value products while discontinuing lower priced goods. For latest Bursa Malaysia indices, charts and other information click here
For latest Bursa Malaysia indices, charts and other information click here