Tiong Nam MD in takeover of Wong Engineering

Affin Hwang Capital Research expects Tiong Nam

KUALA LUMPUR: Tiong Nam Logistics Holdings Bhd managing director Ong Yoong Nyock, via TNTT Realty Sdn Bhd, has made a takeover of Wong Engineering Corporation Bhd at 65 sen a share.

TNTT – which is a major shareholder of Tiong Nam -- and Yong Loy Huat had on Tuesday acquired 39.42 million Wong Engineering shares or 43.07% stake for RM25.62mil via a busines transaction.

AmInvestment Bank, which was acting on behalf of TNTT, said in a statement that Yong Loy Huat, his spouse Low Ah Lim and his brother Kwee Lian and were parties acting in concert with TNTT in the takeover offer. Ong, who is TNTT's controlling shareholder, is deemed the ultimate offeror.

Under the corporate exercise, TNTT's stake in Wong Enginering increased from nil to 30.05% while the collective shareholding and parties acting in concert increased from 10.49% to 55.56%.

Following the purchase of the stake, TNTT was obliged to extend a mandatory takeover offer to acquire the remaining Wong Engineering shares at 65 sen each.

TNTT does not intend to invoke the provisions of the Capital Markets and Services Act, 2007 to compulsorily acquire any outstanding offer shares for which valid acceptances have not been received.

AmInvestment Bank said Ong is a major shareholder in TNTT with 413,000 shares or 82.6% while his wife, Yong Kwee Lai holds the remaining 87,000 shares or 17.4%.

“The offer confirms the offer will not fail due to insufficient financial capability and that every holder who wishes to accept the offer will be paid full in cash,” it said.

Ong holds directly 4.5 million shares of Wong Engineering or 4.92%, and through TNTT, he holds indirectly 27.50 million shares or 30.04%.