ALCOM - Rolled sheet products.
KUALA LUMPUR: Kian Joo Can Factory Bhd group managing director Yeoh Jin Hoe has sold more than half of his controlling stake in Aluminium Co of Malaysia Bhd (Alcom
) a year after he acquired these shares through direct negotiation and a mandatory takeover offer.
In a filing with Bursa Malaysia, the aluminium sheet and foil products maker said Yeoh, 70, who held the Alcom shares through 99%-owned Towerpack Sdn Bhd, disposed of a 30% stake in Alcom or 39.68 million Alcom shares to SCLand Holdings Bhd.
Following the disposal of the shares, which have a market value of RM48.8mil based on Monday’s closing price, Yeoh is left with 38.64 million shares, or 29.22% of Alcom’s issued capital (excluding treasury shares).
Alcom shares ended trading at RM1.23 on Monday. down 2 sen. Based on the price of 61 sen per share Yeoh had acquired his stake, he would have gained RM24.6mil if he had sold them at Monday’s closing price.
Alcom share price has climbed a whopping 86% year-to-date (its last traded price last year was 66.2 sen).
Towerpack acquired 78.23 million shares in Alcom, representing 59.16% equity interest, in August last year for RM47.72mil or only 61 sen apiece.
This led to a mandatory takeover offer in October for the rest of the shares at that price.
Mercury Securities, as independent adviser, urged minority shareholders to reject the offer, which it deemed not fair and not reasonable. It calculated the revalued net asset value per Alcom share (excluding treasury shares as at Oct 10, 2016) to be RM1.96.
The takeover bid received poor response, with Yeoh managing to raise his stake up to 59.22% or 78.31 million shares.
Yeoh was appointed executive director of Alcom on Sept 30, 2016.
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