KUALA LUMPUR: Stockbroker TA Enterprise Bhd (TAE) is seeking the Securities Commission's consent to withdraw its conditional voluntary offer to take over property arm TA Global Bhd.
"Upon receipt of the SC's prior written consent, the offer shall cease and TAE will be released from any obligation arising from the offer," it said in a filing with Bursa Malaysia today.
TAE wanted to abort the deal it proposed on Feb 12 this year after taking into consideration the adverse impact of the novel coronavirus (Covid-19) pandemic on TA Global's financial performance in financial year ending Dec 31, 2020.
TA Global, in April, announced that it has suspended its hotel operations in Malacca, Thailand, Australia and Canada since March due to the pandemic.
"The ripple effects of the pandemic are still unfolding and the full impact of this pandemic can only be determined after the situation stabilises.
TAE on Feb 12 had offered to acquire 2.12 billion ordinary shares or a 39.83% equity interest in subsidiary TA Global for 28 sen per share, The proposed acquisition will be done via a share exchange based on an exchange ratio of 0.4211 new ordinary share in TAE to be issued at an issue price of 66.5 sen each for every one offer share surrendered.
TAE has proposed issuance of up to 550.54 million new TAE shares at an issue price of 66.5 sen each, to be subscribed by TAE’s and TAG’s substantial shareholder and chairman Datuk Tiah Thee Kian.