PETALING JAYA: Joint offerors Wing Tai Holdings Ltd (WTH) and Wing Tai Investment & Development Pte Ltd (WTID) has proposed an unconditional takeover offer to acquire Wing Tai Malaysia Bhd (WTM).
The persons acting in concert with the joint offerors are WTH chairman and managing director Cheng Wai Keung (pic), deputy chairman and deputy managing director Edmund Cheng Wai Wing, along with Wing Sun Development Pte Ltd.
According to a Maybank Investment Bank notice, the joint offerors directly hold a total 66.13% of WTM’s voting shares to date, and the consideration for the offer is RM1.80 per offer share, to be paid in cash.
The offer price of RM1.80 represents a 52.54% premium, based on the last traded price of WTM shares on May 22.
Because the joint offerors already hold more than 50% of the voting shares in WTM, the offer will not be conditional upon any minimum level of acceptances.
In addition, the joint offerors intend to take WTM private by offering minority shareholders of WTM an exit opportunity and to realise their investments for cash.
“The offer would allow WTH to further integrate their financial and operational resources which should result in costs saving and achieve better operational efficiencies.
“Should the offer result in the joint offerors successfully de-listing and owning 100% of WTM, there will be greater flexibility to facilitate ease of review and execution of any restructuring plan for WTM and its subsidiaries, where necessary,” a statement on the Singapore Exchange read.
WTH’s key markets in the Asia-Pacific include Singapore, Malaysia, Australia, Hong Kong and China.
Trading of WTM shares was suspended yesterday.
The offer will be opened for acceptances for at least 21 days from yesterday, or a later date as Maybank IB may announce.
WTM has been listed on the main board of the Bursa Malaysia Securities Bhd since January 1979.
Through its subsidiaries, WTM has businesses in property development and investment, retailing of apparel and lifestyle, garment manufacturing and trading and investment holding.
WTM’s fashion business includes international brands like BCBGMAXAZRIA, Topshop, Topman, Uniqlo, Pumpkin Patch, Dorothy Perkins and Furla.
For the third quarter ended March 31, 2017, WTM registered a net profit of RM12.26mil and revenue of RM84.62mil.
Revenue from the retail division was RM122.3mil in the third quarter, as compared with RM137.5mil in the corresponding period last year, mainly due to lower number of outlets and cautious consumers spending.
Meanwhile, WTM’s property development division contributed revenue of RM98.5mil during the third quarter, due to increased revenue contribution from BM Mahkota and Bukit Minyak Utama projects, coupled with the sale of Sering Ukay’s vacant land located at Bandar Ulu Kelang.