This article first appeared in The Edge Financial Daily on September 28, 2017 - October 4, 2017

KUALA LUMPUR: Elusive tycoon Tan Sri Robert Tan Hua Choon has sold 51% of his controlling stake in Goh Ban Huat Bhd (GBH) for RM145.71 million or RM1.40 per share and 40 sen per warrant.

As at June 20, 2017, Tan had a 63.83% stake in GBH. The disposal leaves him with a 12.83% stake in the ceramic and sanitary ware company.

Yesterday, Paragon Adventure Sdn Bhd (PASB) emerged as the largest shareholder in GBH after buying the 51% stake in GBH from Tan, who is the non-executive chairman of GBH, for RM145.71 million or RM1.40 per share and 40 sen per warrant. PASB is a private vehicle owned by Datuk Seri Edwin Tan Pei Seng (65%) and Datuk Seri Godwin Tan Pei Poh (35%).

The acquisition triggered a mandatory general offer (MGO) from PASB, which is making an offer to buy the rest of GBH shares and warrants at the same price.

The offer price of RM1.40 cash per share represents a 2.1% discount to GBH’s closing price of RM1.43 on Tuesday, while the offer price for GBH warrants at 40 sen each is a 13% discount to its Tuesday’s closing price of 46 sen per warrant.

In a filing with Bursa Malaysia yesterday, GBH said PASB intends to keep the listing status of GBH.

The takeover price of RM1.40 was made after taking consideration, among others, GBH shares’ volume-weighted average market price (VWAMP) of between RM1.35 and RM1.41 over the past six months. GBH warrants’ VWAMP from the five-day to the six-month period stood between 36 sen and 40 sen, said PASB.

The offer price by PASB is also inclusive of any GBH dividend payout that is announced after the notice yesterday.

GBH is venturing into property development, proposing to acquire a vacant land measuring 9,925 sq m in Mont Kiara here for RM39.53 million in August.

Its property investment business was one of the key drivers that helped lift its first financial quarter ended June 30, 2017 to the black with a net profit of RM445,000 from a net loss of RM715,000 a year ago.

Revenue was however 63.9% lower at RM4.79 million from RM13.25 million after it ceased its clay pipe manufacturing business in its financial year ended March 31, 2017.

GBH shares were untraded yesterday. Its market capitalisation stood at RM266.89 million. Its warrants closed down three sen or 6.52% at 43 sen.