PETALING JAYA: Tanco Holdings Bhd
announced the term sheet agreement between itself and Pertubuhan Keselamatan Sosial (Perkeso) – supposedly for subscription by Perkeso for redeemable preference shares (RPS) in the former – has collapsed.
In a filing with Bursa Malaysia, Tanco said it received notification from Perkeso saying that since both parties were unable to finalise and execute the transaction documents of the term sheet on or before the cut-off date of Mar 31, the term sheet has accordingly automatically terminated as of Apr 1.Therefore the term sheet is null and void, as prescribed in the terms of the supplemental term sheet.
The term sheet would have allowed Perkeso to make a substantial RM100mil investment into Tanco, acquiring 100 million shares at RM1 each, and would make up almost a fifth of the entire current market capital of Tanco which stands at RM600.6mil.
In return, Perkeso would receive a dividend of 8% per annum throughout a five-year tenure from the date of issuance of the RPS, with a 20% redemption of the RPS to be carried out in the fourth year, and the remaining 80% redemption to be performed in the final year.
The deal first came to light in October 2022, and raised many an eyebrow at that time particularly due to Tanco having been on a loss-making streak for its past four fiscal years. As with all of Perkeso’s other investment strategies and guidelines, any potential deals have to be approved by the Ministry of Finance.
Of late however, the pendulum seemed to have begun to swing Tanco’s way, having come to a settlement with main creditor Bank Kerjasama Rakyat Malaysia Bhd and reducing its overall debt to RM6.7mil.
