PETALING JAYA: The single largest shareholder and chief executive officer of Watta Holding Bhd has launched a conditional mandatory takeover offer for the company at 50 sen per offer share.
Datuk Lee Foo San, who is also the deputy chairman, triggered the mandatory takeover offer threshold of 33% after raising his stake in the little-known company to 45.59% yesterday.
Via direct business transactions, Lee acquired an additional 11.14 million shares, or a 13.19% stake, on top of his existing shareholding of 32.8%.
The offer price of 50 sen is at a 1.01% premium compared to the 49.5 sen closing price on Aug 4.
It also represents a 8.2% premium to the five-day volume-weighted average market price of Watta shares.
The offer to acquire shares will be fully settled in cash.
AmInvestment Bank, which acted on behalf of Lee, said that he intends to maintain the listing status of Watta.
The investment bank also confirmed that Lee as the offeror has sufficient financial resources to purchase the remaining shares not owned by him.
“All valid acceptances of the offer by the holders shall be irrevocable, ” stated AmInvestment Bank.
It also added that “the offer will remain open for acceptances until 5pm for a period of not less than 21 days from the posting date (Aug 5), or such other later date as the offeror may decide”.
It is worth noting that two individuals namely Lee Fook Sin and Teoh Chee Kheong are persons acting in concert with Lee.
“As at Aug 5, Lee Fook Sin holds 112,000 Watta shares representing approximately 0.13% equity interest in Watta while Teoh Chee Kheong holds 200 Watta shares representing a negligible equity interest in Watta, ” said AmInvestment Bank.
It pointed out that Lee may only withdraw the offer with the prior written consent of the Securities Commission Malaysia.
Lee was appointed to the board of Watta on May 21,1998 and has over 20 years of experience in the telecommunication and travel related businesses.
The stock was temporarily suspended from 4.47pm to facilitate the announcement of the mandatory takeover offer. Trading of the shares will resume today as usual.
Watta, according to its website, is principally involved in the servicing and repair of mobile telecommunication equipment products and property investment.
Its subsidiaries Mobile Technic Sdn Bhd and SEMS Services Sdn Bhd offer service and maintenance of mobile telecommunication devices.
In the past, its subsidiary Watta Battery Industries Sdn Bhd (which owns four industrial properties in Balakong, Selangor), had been involved in manufacturing, distribution and trading of automotive batteries.
Having ceased the operations in automotive batteries in 2018, the industrial properties have been converted into investment properties.
In the first quarter ended March 31,2020, Watta made a net profit of RM4,000 as compared to a net loss of RM448,00 a year earlier.
The revenue in the January to March period was RM3mil.
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