Mieco Chipboard Bhd's largest particle line plant at Kechau Tui, Lipis, Pahang.
KUALA LUMPUR: SYF Resources Bhd executive chairman and CEO Datuk Seri Ng Ah Chai is expected to launch a mandatory general offer (MGO) for the remaining shares he does not own in Mieco Chipboard Bhd
following the signing of a conditional agreement to acquire a 56.76% stake in the chipboard maker for RM107.27mil.
Mieco told Bursa Malaysia that Ng, who is a majority shareholder in property developer and furniture maker SYF Resources, was buying BRDB Developments Sdn Bhd’s entire holding of 119.19 million shares for 90 sen each in cash. (Trading closed at 85 sen on Thursday, down 2.5 sen, with 1.022 million shares done.)
The conditions precedent in the share sale agreement are expected to be fulfilled within three months from the date of the agreement (Thursday).
“Datuk Seri Ng has informed that upon the agreement becoming unconditional, he will undertake the MGO obligation and the MGO will be fully satisfied by way of cash at an offer price of 90 sen per Mieco share, which is equivalent to the acquisition price of the sale shares, in accordance with the provisions of CMSA (Capital Markets and Services Act 2007) and the Code (Malaysian Code on Take-Overs and Mergers 2010),” Mieco said.
Ng, who is also a substantial shareholder of Inch Kenneth Kajang Rubber Plc, currently does not have any equity interest in Mieco.
For its financial year ended Dec 31, 2015, Mieco posted a net profit of RM18.64mil, or 8.9 sen a share. Net tangible assets stood at 1.39 sen per share.
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