SC rejects TAE's application to abort TA Global takeover deal

KUALA LUMPUR: Securities Commission has rejected TA Enterprise Bhd's (TAE) application to abort its conditional voluntary offer to take over TA Global Bhd (TAG).

With the decision, the SC said in a statement today, TAE's non-interested shareholders will get to decide whether to vote for or against the offer at their extra ordinary general meeting (EGM).

TAE on May 6 has submitted an application to ask the SC for permission to withdraw the offer made on Feb 12.

The stockbroker cited the adverse impact of the Covid-19 pandemic to TAG’s business as the reason for making the application.

"As the offer was announced at a time when Covid-19 was already known, TAE and its board should have taken into consideration the risks before making the announcement since they would be in a position to evaluate the prospects of TAG's business," the SC said.

In arriving to its decision to reject TAE's applications, the SC said it had considered the justification provided by the applicant, the conduct of the applicant from the time of the announcement of the offer up to the date of application and precedents from other jurisdictions.

The SC also said that the since the offer was made, it was likely the the share price of the company was supported by the offer price.

"Hence, the offeror or any other person who proposes to make an acquisition which may lead to an obligation to make a take-over offer, must ensure that he is able to implement the offer in full," it said.

On Feb 12, TAE has announced an offer to acquire the remaining shares it did not own in TA Global for 28 sen a piece.

"On behalf of the board, TA Securities wishes to announce that the SC had, vide its letter dated June 1, resolved to decline the application for the withdrawal after having considered the justifications provided on a holistic basis," TAE said in a filing with Bursa Malaysia today.

"Pursuant thereto, the board will announce the updates to the proposals in due course," it added.