Tycoon Upatkoon aborts RM391.4mil takeover offer of MWE

Multi-Purpose Holdings Bhd managing director Datuk Surin Upatkoon @ K.K. Lau

KUALA LUMPUR: Tan Sri Surin Upatkoon’s investment vehicle Pinjaya Sdn Bhd has shelved its RM391.4mil takeover offer for garment maker MWE Holdings Bhd.

According to MWE’s filing with Bursa Malaysia, Alliance Investment Bank Bhd said that Pinjaya had on Thursday written back to MWE and declined the “non-interested” directors’ request for a one-month extension to 5.30pm on Jan 9, 2016, to consider the offer.

“Henceforth, the offer has lapsed,” the statement said.

Last month Pinjaya, which is MWE’s largest shareholder with a 30.8% stake, made an offer to acquire the entire business and undertaking of MWE for RM391.4mil or RM1.70 per share.

MWE announced on Nov 30 that the offer would be open for acceptance until 5:30pm on Dec 10 unless extended by the offerer.

Surin and his son Krian Upatkoon, who are non-executive director and executive director of MWE respectuvely, abstained from deliberating and voting on the proposals, which also included a distribution (via a special dividend) and/or a capital repayment exercise to return RM1.70 per MWE share to all entitled shareholders.

Pinjaya proposed to pay part of the purchase consideration in cash while the rest (RM123.91mil) through the proposed distribution. The amount due to Pinjaya from the distribution was to be set off against part of the deferred amount.

Pinjaya also would seek to delist MWE after the completion of the proposed distribution.

MWE shares fell 4 sen to close at RM1.55 on Thursday.