BCorp’s offer for Redtone shares receives tepid response

KUALA LUMPUR: Berjaya Corp Bhd (BCorp), whose offer for Redtone shares has so far garnered acceptances that put its holding at just under 50%, has extended the offer’s closing date to May 22.

BCorp told Bursa Malaysia that as of 5pm on Wednesday (two days before the original closing date), it had obtained valid acceptances from the public that represented a 13.45% interest, raising its shareholding in the telecommunications service provider to 49.63%.

As for the offer for the irredeemable convertible unsecured loan stocks (Iculs), it received valid acceptances of 0.73%, giving it a 63.93% share of the outstanding Iculs.

BCorp, the ultimate offeror via indirect unit Juara Sejati Sdn Bhd, made a cash offer of 80 sen per Redtone share and 32 sen per Redtone Iculs on March 27 after triggering a mandatory takeover obligation.

The obligation arose after Juara Sejati acquired a 10.53% stake in Redtone for RM56.1mil (80 sen per share), raising the shareholdings of Juara Sejati and persons acting in concert with it to 35.84%.

Two of Redtone’s four independent directors had last month rejected the “fair and reasonable” recommendation by independent adviser Mercury Securities Sdn Bhd regarding Juara Sejati’s takeover offer, saying that the offer price was too low given its long-term growth potential and prospects.

Johor’s Sultan Ibrahim Sultan Iskandar who recently emerged as Redtone’s single largest shareholder with a 20% stake has previously stated he will not be selling his stake.

BCorp intends to keep Redtone’s listing status.

Redtone closed 0.5 sen lower at 79.5 sen on Wednesday,