M&A in SYF Resources reverse takeover

Under the proposed exercise, furniture maker SYF will buy M&A Securities, the stockbroking arm of Insas Bhd, for RM222mil by issuing 1.009 billion new SYF shares at 22 sen each to Insas.

PETALING JAYA: M&A Securities Sdn Bhd is set to list on Bursa Malaysia via a reverse takeover of SYF Resources Bhd.

Under the proposed exercise sanctioned conditionally by the Securities Commission (SC), furniture maker SYF will buy M&A Securities, the stockbroking arm of Insas Bhd, for RM222mil with the consideration to be satisfied with the issuance of 1.009 billion new SYF shares at 22 sen each to Insas.

The proposed corporate exercise will also see SYF sell its rubberwood furniture manufacturing business under Seng Yip Furniture Sdn Bhd for RM50mil cash to Mieco Chipboard Bhd and two parcels of freehold land in Cheras for RM21mil cash to Juta Development Sdn Bhd, according to SYF’s exchange filing.

The money raised from the sales will be distributed at the rate of 18 sen per share to SYF’s shareholders via a special dividend and/or capital repayment.

The 18 sen cash distribution will comprise seven sen per SYF share to be distributed on the entitlement date after completion of the sale of Seng Yip and the remaining 11 sen per SYF share after completion of the sale of the freehold land.

SYF also intends a undertake a fresh fundraising exercise involving the issuance of 284 million SYF rights shares to shareholders and a restricted issue of up to 158 million SYF new shares to eligible directors and employees and persons who have contributed to the success of M&A Securities group, both of which will be priced at 22 sen per share.

The fundraising exercise will raise a total of up to RM97mil. Upon completion of the takeover, SYF will be renamed M&A Equity Holdings Bhd to reflect its new core stockbroking business.

SYF intends to obtain its shareholder approval for the proposals by mid-January 2023. An exemption to Insas from undertaking a mandatory offer on SYF will be sought from the SC following SYF shareholders’ approval on its corporate proposals.