This article first appeared in The Edge Financial Daily on October 12, 2017 - October 18, 2017

KUALA LUMPUR: Johan Holdings Bhd’s chief executive Tan Sri Tan Kay Hock (pic) and his wife, who collectively own about 48% of the group’s shares, are making a conditional mandatory takeover offer for the remaining shares.

Tan, who is also the chairman of George Kent (Malaysia) Bhd, and Puan Sri Tan Swee Bee are offering to buy the shares at 25 sen apiece.

In a filing with Bursa Malaysia, Johan said Mustika Manis Sdn Bhd, a company wholly owned by the couple, has acquired 15 million shares, which represents 2.41% of the voting shares in the group, at 25 sen a share or a total of RM3.75 million.

Prior to this, Tan and his wife already held a 45.76% stake in Johan via their vehicles Kin Fai International Ltd, Kwok Heng Holdings Ltd, Star Wealth Investment Ltd and Suncrown Holdings Ltd.

Mustika is obliged to offer to acquire all remaining Johan shares as the 45.76% stake falls between the 33% and 50% mandatory takeover offer-triggering range, and with Mustika subsequently acquiring more than 2% of Johan’s voting shares in a period of six months.

The offer price of 25 sen is equivalent to the price paid by Mustika, and is a 1.96% discount to Johan’s closing market price on Tuesday of 25.5 sen. The offerors intend to maintain the listing status of Johan.

Yesterday, Johan closed at 26 sen for a market capitalisation of RM161.97 million.