Petaling Tin receives MGO from president

At 24 sen a share, offer values company at RM83mil

PETALING JAYA: Property developer Petaling Tin Bhd said it has received a mandatory general offer (MGO) from its president Tan Sri Dr Chen Lip Keong to buy out minority shareholders in the company for 24 sen a share.

The offer valued Petaling Tin at RM83mil.

Shares in Petaling Tin were last traded at 24.5 sen yesterday.

The MGO was triggered after Chen’s stake in the company increased to 65.07% yesterday from 26.54%.

Chen acquired the additional 133,238,731 shares, representing 38.53% of the company, via direct business transactions.

The offer price of 24 sen a share represents a 4% discount to the last transacted price of Petaling Tin shares as at April 27, 2016, being the last trading day (LTD) prior to the date of the acquisition.

It also represents a 7.7% discount to the five-day volume weighted average market price up to and including the LTD.

Chen has no intention of maintaining the listing status of Petaling Tin, according to the offer documents prepared by RHB Investment Bank Bhd on behalf of Chen.

For the financial year ended Dec 31, 2015, Petaling Tin posted a net loss of RM4.62mil, while revenue was at RM2.40mil.

In its fourth-quarter report, the company said it had generated a revenue of RM2.40mil and a loss before taxation of RM5.13mil.

The revenue, it said, was mainly from rental income derived from its investment properties.

Moving forward, it said the group expected to generate and unlock value from its development projects, properties and existing land bank.

The company recently changed its financial year-end from Dec 31 to March 31, and its next audited financial statement will be for a period of 15 months.

Chen is also the president and major shareholder of Karambunai Corp Bhd and executive director of FACB Industries Incorporated Bhd, which are listed on Bursa Malaysia.

His son, Chen Yiy Fon, is the CEO and non-independent executive director of Petaling Tin.

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