SC clears 10 offers of takeover and mergers worth RM5.53bil in 2023 - report

KUALA LUMPUR: The Securities Commission Malaysia (SC) has cleared 10 offer documents involving RM5.53 billion for takeovers and mergers in 2023 compared with 18 offers worth RM2.10 billion a year ago.

The SC said in its Annual Report 2023/Capital Market Stability Review 2023 released today that of the 10, seven involved offeree companies listed on the Main Market Bursa Malaysia, one was an offeree company listed on the ACE Market and two were related to an unlisted public company.

"The largest offer in 2023 was by Sime Darby Enterprise Sdn Bhd (a wholly owned subsidiary of Sime Darby Bhd) for the remaining shares in UMW Holdings Bhd at RM2.27 billion in offer value, accounting for 41 per cent of the total offer value in 2023.

"Other notable offers in terms of value include the offers by Lembaga Tabung Angkatan Tentera (LTAT) for the remaining shares in Boustead Plantations Bhd’s at RM1.96 billion and in Boustead Holdings Bhd at RM703.25 million," the report said.

It noted that the consumer products and services sector had the highest in terms of offer value at RM2.34 billion, followed by the plantation sector at RM1.96 billion.

According to the SC, it considered 62 applications under the Rules on Take-overs, Mergers and Compulsory Acquisitions in 2023 versus 77 applications in the previous year.

This was mainly due to the lower number of take-over offers/schemes and exemptions for the mandatory offer obligation under the whitewash procedures undertaken during the year, it added.

Whitewash refers to an exemption from mandatory offer obligation arising from the issuance of new securities, granted by the SC subject to fulfillment of stipulated conditions including approval from independent holders at a general meeting.

The commission noted that notwithstanding the moderation in take-over and merger activities compared to 2022, applications for exemptions from having to undertake a mandatory take-over offer rose from 11 in 2022 to 19 in 2023.

Six applications were related to whitewash exemptions. The remaining 13 applications involved acquisitions or transfer of shares within members of a group acting in concert according to succession planning or internal reorganisation exercises, it added.

The SC also cleared 13 independent advice circulars and considered 16 applications for various matters under the Capital Markets and Services Act 2007 (CMSA) and the rules, according to the report. - Bernama