KUALA LUMPUR (March 26): Amazing Parade Sdn Bhd is making a mandatory takeover offer to Eastern & Oriental Bhd (E&O) at 60 sen per share after it bought a 10.89% stake from Sime Darby Bhd.
The offer price is 1.5 sen higher compared with today's closing price of 58.5 sen. The property stock has climbed 62.5% from 36 sen in early November last year.
In a filing with Bursa Malaysia, E&O said it received notice of the MGO from Amazing Parade — the private vehicle of the Tee brothers, who control the construction firm Kerjaya Prospek Group Bhd.
The latest share purchase has raised the collective shareholding of Amazing Parade and parties acting in concert to 42.71% from 31.82%. Consequently, Amazing Parade is obliged to make a takeover offer.
The offerors intend to maintain the listing status of E&O on the Main Market. The takeover offer is conditional upon the offerors holding in aggreggate more than 50% shareholding in the property company.
Currently, Datuk Tee Eng Ho, the co-founder and executive chairman of Kerjaya Prospek, is sitting on E&O's board as a non-independent and non-executive director.
According to the filing, Amazing Parade's shareholders are Eng Ho (25%) and his spouse Datin Toh Siew Chuon (25%) and Tee Eng Seng (50%).
This will be one of the Bursa-listed property companies that the Tee brothers control. The other is GSB Group Bhd, which executive chairman is Toh.
In a separate announcement, Sime Darby said it has disposed of its last block of shares in E&O to Amazing Parade for RM93.5 million cash.
The group told a bourse filing that its indirect wholly-owned subsidiary Sime Darby Nominees Sdn Bhd (SD Nominees) today entered into a share sale agreement to dispose of its entire stake in E&O, comprising 155.83 million ordinary shares and representing approximately 10.89% equity interest in the shares outstanding of E&O to Amazing Parade for a total cash consideration of RM93.5 million or 60 sen per share.
Sime Darby said the disposal is in line with its ongoing non-core asset rationalisation exercise.
Sime Darby bought into E&O in 2011. The group acquired a 30% stake in the company at RM2.30 per share or RM766 million from E&O managing director Datuk Seri Terry Tham Ka Hon and several other major shareholders of E&O.
In 2014, Sime Darby sold 110 million shares or a 9.9% stake back to Tham at RM2.90 per share or RM319 million. In 2016, it sold another 125.98 million shares or a 10% stake back to Tham at RM2.60 or RM342 million.
Sime Darby closed one sen or 0.41% lower at RM2.40 today, valuing the group at RM16.33 billion.