KUALA LUMPUR: XOX Bhd has proposed to acquire two ordinary shares in Theron Holdings Sdn Bhd, representing 100% of the total issued and paid-up share capital of Theron for RM19.25mil.
In a filing with Bursa Malaysia, XOX said its wholly-owned subsidiary, XOX (Hong Kong) Limited (XOX HK) had entered into a share sale agreement with Muar Ban Lee Group Bhd for the proposed acquisition.
Theron is a special purpose vehicle incorporated by Muar Ban Lee for the purpose of acquiring and holding the shares in Symphony Life Bhd.
As of the date of this announcement, Theron is holding 98.09 million shares in Symphony, representing 13.7% of the total issued and paid-up share capital of Symphony.
Symphony is principally engaged in the business of property development and property investment.
XOX said its board has deliberated the opportunity and found the proposed acquisition to be synergistic.
“In an effort to streamline XOX’s capital management, the management has deliberated various strategies which include shares buy back and placement of excess cash in high yielding funds.
“The proposed acquisition is part of XOX’s strategy to maximise return on its excess fund, which will ultimately benefit its shareholders,” it said.
In addition, XOX said Symphony is currently trading at the lower end of its range of intrinsic value. Hence there is a potential of immediate capital appreciation for the proposed acquisition in the event of any correction to Symphony’s current depressed share price.