Firms receive takeover offers from founders

  • Business
  • Tuesday, 14 Jan 2020

PETALING JAYA: The founders and major shareholders of two separate mid-size property firms, Amverton Bhd and Chin Hin Group Property Bhd are raising their stakes, a signal that they believed that their companies are undervalued.

Amverton, in a filing with the stock exchange yesterday, said it has received a voluntary takeover from founder and controlling shareholder Tan Sri Ng Thian Hock.

Ng controls 77.86% of shares in the company is offering to buy a 22.14% stake in the company that he doesn’t own for RM1.20 sen each.

He intends to delist the company from Bursa Malaysia as he will not be taking any steps to comply with the public spread requirement by Bursa Malaysia.

For the last three years, shares in Amverton has been flattish trading, alongside with the weakness in the property market. In 2018, the company said it did not launch any new property projects.

The property developer has a market capitalisation of RM438mil. Aside from its property development projects in Klang and Sg. Buloh, Amverton has planned to develop mixed commercial and residential properties, as well as retail and leisure amenities at Carey Island.

Is also managed Amverton Cove Gold and Island Resort in Pulau Carey as well as some oil palm plantation estate.

Meanwhile, in a separate filing on Bursa Malaysia, Chin Hin said its chairman Datuk Seri Chiau Beng Teik and his family has made a takeover offer for all the remaining shares they don’t owned in the company at 30 sen a piece

It said that Chiau has raised his stake in the company from 31.39% to 37.59% after he bought additional shares in the company via several direct deals and open market.

The move triggered had triggered a mandatory general offer for the remaining shares and warrants he doesn’t own in Chin Hin.

Notably, several shareholders with collectively own 24.58% stake in Chin Hin had rejected the offer.

Shares in Chin Hin had been on a decline by 24% in the last two months. The company has a market capitalisation of RM374mil.

Chiau intends to keep the listing status of Chin Hin on Bursa Malaysia.

Notably, in November last year, Chin Hin sold RM76.45mil worth of property assets to Chiau, to raise cash to repay bank loans and finance working capital.

Additionally, Chin Hin had also announced a proposal to list its 45%-subsidiary Atlantic Blue Sdn Bhd on the Ace Market of Bursa Malaysia.

The proceeds from the disposal has been earmarked to repay part of the group’s existing bank borrowings, which stood at RM521.41mil as at end-2018.

For the first nine-month of FY19, Chin Hin saw its net profit increased to RM16.98mil compared to RM14.72mil previously.

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