KUALA LUMPUR: SYF Resources Bhd has obtained conditional approval from the Securities Commission (SC) for a reverse takeover by stockbroking firm M&A Securities Sdn Bhd.
In a statement, the furniture maker said the reverse takeover will see SYF acquiring 100% of M&A Securities for RM222mil, which will be satisfied via the issuance of 1.009 billion SYF shares to the latter's parent, Insas Bhd
, at 22 sen each.
It said an exemption to Insas from undertaking a mandatory offer on SYF will be sought from the SC in due course following SYF's shareholders' approval.
As part of the reverse takeover proposals approved by the SC, SYF will dispose of its rubberwood furniture manufacturing arm, Seng Yip Furniture Sdn Bhd, for RM50mil cash and two parcels of freehold land in Cheras for RM21mil cash.
Subsequently, SYF will distribute 18 sen per share to its shareholders via special dividend and/or capital repayment.
SYF will also undertake a fundraising exercise involving the issuance of 284 million SYF shares to shareholders via a rights issue and up to 158 million SYF shares to eligible directors and employees and persons who have contributed to the success of M&A Group.
At an issue price of 22 sen per share, the fundraising exercise will raise a total of up to RM97mil.
Upon completion, SYF will be re-named M&A Equity Holdings Bhd to reflect its new core business in the financial services industry.
SYF said it intends to obtain shareholders approval for the proposals by mid-January 2023.
