PETALING JAYA: Tong Herr Resources Bhd
has received a proposal from its major shareholders to privatise the company by acquiring the remaining 25.5% stake not already owned by them and persons acting in concert (PACs) at RM2.55 a share.
The offer price represents a 34.2% premium to Tong Herr’s last closing price of RM1.90.
In a filing with Bursa Malaysia, Allrich Corp and Richard Holdings Ltd, which own 39.68% and 31.95% of Tong Herr, respectively, made the proposal.
Together with their joint ultimate offerors and PACs, they collectively hold 114.38 million shares, representing approximately 74.5% of Tong Herr’s issued shares.
In a letter to Tong Herr, the joint offerors said the privatisation would be undertaken through a selective capital reduction and repayment exercise.
They said the RM2.55 offer price was based on Tong Herr’s closing price and volume weighted average price up to Aug 5, 2026, representing a 41.7% premium to its RM1.80 closing price on that day.
“We do not intend to maintain the listing status of the company on the Main Market and will request the company to submit an application to Bursa Securities to delist the company and withdraw its listing status upon completion,” they noted.
On the rationale, the joint offerors said privatisation would provide Tong Herr with greater flexibility in managing its business, allowing it to focus on growth and long-term value creation without incurring the costs and management resources required to maintain its listed status.
They also cited the company’s low trading liquidity, noting that Tong Herr recorded an average daily trading volume of just 21,075 shares over the past three years up to the last trading day, representing only 0.05% of its free float.
“As such, the proposed SCR provides an opportunity for the entitled shareholders to immediately exit and realise their investments in the company,” they added.
The proposed SCR is subject to, among others, approval from non-interested shareholders via a special resolution at an extraordinary general meeting and confirmation by the High Court.
“The special resolution is required to be approved by at least a majority in number of the non-interested shareholders and 75% in value to the votes attached to the shares held by the non-interested shareholders that are cast at the EGM,” they noted.
It must also not be voted against by more than 10% in value of the votes attached to all shares held by non-interested shareholders, they added.
Tong Herr said its non-interested directors will deliberate on the proposal and decide on the next course of action.
“A further announcement will be made in due course after the deliberation by the non-interested directors,” it added.
Tong Herr is principally engaged in the manufacturing and sale of stainless steel fasteners, aluminium extrusions and related products.
