KUALA LUMPUR (June 14): Ewein Bhd has received notice of an unconditional mandatory takeover offer (MTO) at 60 sen per share from the managing director and major shareholder of Nationgate Holdings Bhd Ooi Eng Leong.

Ooi made a move to acquire all the remaining 149.01 million shares or 49.41% stake not already owned by him and the persons acting in concert (PAC), Datuk Seri Hong Yeam Wah and Goh Kiang Teng, for a total RM89.41 million.

The takeover offer came after Ooi raised his stake in Ewein from 3.84% to 43.82% after buying a 39.99% stake from Hijauwasa Sdn Bhd for RM72.36 million.

Collectively, Ooi and the PACs hold 50.59% shareholdings in Ewein, and they intend to maintain the listing status of the group on the Main Market of Bursa Malaysia.

However, the offer price of 60 sen per share is 14.9% lower than Ewein’s last traded price of 70.5 sen as at 4.16pm on Wednesday (June 14), after trading was suspended until 9am on Thursday. Note that Ewein’s share price has risen over 100% since the beginning of this year.

Ewein, through its subsidiaries, manufactures and designs precision sheet metal moulds, tools, dies and fabricated parts, used in electrical and electronics equipment. The group also manufactures precision plastic injection molding products and product finishing.

Ewein’s net profit more than doubled to RM716,000 in the first quarter ended March 31, 2023 (1QFY2023), from RM332,000 in the same period last year, on higher interest income. Revenue, however, fell 19.71% to RM7.5 million from RM9.3 million on lower contribution from the manufacturing segment.

The group’s founder and executive chairman Datuk Ewe Swee Kheng passed away at the age of 53 in October 2021. 

It was reported that Ewe was one of the prosecution witnesses in the RM6.3 billion Penang undersea tunnel graft case involving former Penang chief minister and finance minister Lim Guan Eng.