KUALA LUMPUR: Concrete Engineering Products
Bhd (CEPCO) has received an unconditional mandatory take-over offer from YTL Cement Bhd at RM2.60 a share in cash.
In a filing with Bursa Malaysia, CEPCO said the offer follows YTL Cement’s proposed acquisition of a 53.49% stake in the company for up to RM103.79mil.
YTL Cement had entered into unconditional share purchase agreements to acquire 39.92 million CEPCO shares from 10 vendors, with completion expected within two market days via direct business transactions on Bursa Malaysia.
Upon completion, YTL Cement’s direct stake in CEPCO will rise from nil to about 53.49%, triggering the mandatory offer for all remaining shares not already owned by the group.
The offer price of RM2.60 a share represents a premium of 39% to CEPCO’s closing price of RM1.87 on March 31, as well as premiums ranging from 40.7% to 96.2% over its recent volume weighted average market prices.
YTL Cement said the offer is unconditional and not subject to any minimum level of acceptances, as the group will already hold a controlling stake following the acquisition.
It has no intention to invoke compulsory acquisition provisions, even if it reaches the required threshold under subsection 222(1) of the CMSA.
YTL Cement intends to maintain the listing status of CEPCO on the Main Market or Bursa Malaysia.
However, should CEPCO fall short of the required public shareholding spread, the group said it will work with the company to explore options to restore compliance.
