Wednesday 25 Dec 2024
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KUALA LUMPUR (May 23): Hock Seng Lee Bhd will be officially removed from the exchange effective Thursday (May 26), its Bursa Malaysia filing showed on Monday.

The removal came after Hong Seng Lee Enterprise Sdn Bhd's (HSLE) plan to take the group private at RM1.35 per share.

The takeover offer was first announced on Feb 17 involving HSLE, where the joint ultimate offerors comprised Datuk Yu Chee Hoe, Tang Sing Ngiik, Vincent Yu Yuong Yih and Tony Yu Yuong Wee.

Based on acquisition rules, HSLE would need to secure an acceptance level of 96% in order to trigger a compulsory acquisition of all remaining shares not owned by the offer.

In a circular dated March 28, independent advisor Mercury Securities Sdn Bhd told shareholders that the offer was “not fair” as the offer price is between 30.77% and 31.82% less than the estimated value per share of HSL of between RM1.95 and RM1.98, based on a sum-of-parts valuation.

Nevertheless, Mercury Securities said the offer was “reasonable” as it would provide an opportunity for minority shareholders to exit the Sarawak-based marine engineering and construction company, whose shares are illiquid.

At noon break on Monday, shares in Hock Seng Lee ended unchanged at RM1.35, valuing the group at RM786.61 million.

Edited ByS Kanagaraju
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