Hong Leong offers to take cement maker Tasek private

  • Business
  • Tuesday, 28 May 2019

HL Cement said yesterday that except for the closing date, all other details and the terms and conditions of the offer, including the takeover offer price of RM5.50 a share, remained unchanged.

KUALA LUMPUR: The Hong Leong Group, controlled by Tan Sri  Quek Leng Chan, has offered to buyout minority shareholders in cement producer Tasek Corp Bhd for RM5.50 a share.

Shares in Tasek were last traded at RM5.05 on Tuesday. The offer values the company at RM666mil.

Quek, through his Singapore-based holding company Hong Leong Asia Ltd, controls a 80.8% equity interest in Tasek.

CIMB Investment Bank Bhd, on behalf of the offeror, said the unconditional voluntary take over was made to facilitate the move to delist Tasek from Bursa Malaysia.

Tasek reported a net loss of RM10.4mil on revenue of RM137mil in the first quarter ended March 31, 2019. The company blamed prolonged intense pricing competition for the losses, but said demand is expected to improve with large infrastructure development projects back on track.

Earlier this month, YTL Corp Bhd's subsidiary YTL Cement Bhd acquired LafargeHolcim Ltd's 51% stake in Lafarhge Malaysia Bhd for RM1.6bil.

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