Friday 14 Jun 2024
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KUALA LUMPUR (Feb 7): Rexit Bhd’s new substantial shareholders — Datuk Seow Gim Shen, Metaco Assets Holdings Sdn Bhd and Bemas Holdings Sdn Bhd — have extended a formal unconditional mandatory takeover offer to acquire all the remaining ordinary shares in the company at 85 sen per share.

This came after the three parties emerged as the new substantial shareholders of Rexit on Jan 17, after acquiring an aggregate of 92.27 million shares or a 53.27% stake in the group for a total cash consideration of RM78.43 million.

According to a statement issued by UOB Kay Hian Securities (M) Sdn Bhd on behalf of Rexit on Wednesday, the offer will remain open for acceptances until Feb 28, being the first closing date. However, the joint offerors may extend the date and time for acceptance beyond the first closing date in accordance with the provisions of the rules.

Rexit, which made its debut on Bursa Malaysia in 2005, is principally involved in providing software solutions to insurance and financial services industries, in which it offers various IT solutions and related services including web-based insurance solutions, back-end processing, online transaction system, workflow integration, case management and document management system.

As such, UOB said the joint offerors intend to capitalise on Rexit's track record and other growth opportunities which are synergistic or complementary with the their business involvement, and that such strategies may include making business arrangements, restructuring, reorganisation and/or rationalisation of Rexit's business and operations.

The joint parties have also agreed to maintain the listing status of Rexit.

On the continuation of the group's business, UOB said the joint offerors presently do not have any plan and/or intention to liquidate any companies within Rexit and intend to continue with the group's existing core business and operations.

They also do not have any immediate plan to sell the assets or redeploy the fixed assets of Rexit or introduce major changes to the group.

Between the financial year ended June 30, 2020 (FY2020) and FY2023, Rexit’s profit climbed steadily from about RM9.52 million to about RM11.1 million, generated from annual revenues of between RM25.06 million and RM26.74 million. Its net margins were in the range of 36% to 42%.

At 4.05pm on Wednesday, shares of Rexit were trading down 1.5 sen, or 1.5%, at 98.5 sen, with a market capitalisation of RM186.49 million.

Edited ByKamarul Azhar
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