KUALA LUMPUR (March 29): Kitchen cabinet manufacturer Signature International Bhd has received a conditional takeover offer from home-grown building materials specialist Chin Hin Group Bhd on Friday to acquire all remaining shares Chin Hin does not own, at 84 sen per share.
The mandatory takeover offer was triggered subsequent to Chin Hin’s acquisition of a 4.77% stake in Signature, which brought Chin Hin’s holdings in Signature, together with persons acting in concerts (PACs) with it, to 33.49%, according to the notice issued on their behalf by AmInvestment Bank Bhd.
“The offerer (Chin Hin) is obliged to extend a conditional mandatory takeover offer to acquire all remaining Signature International shares not already owned by Chin Hin at a cash offer price of 84 sen per share,” AmInvestment said.
“The offer is conditional upon the offeror to meet the acceptance condition, as the collective shareholdings of offeror and its PACs in Signature (International) upon completion of the acquisition is less than 50% of voting shares in Signature International,” it said.
The 84 sen per share purchase price represents a 10.64% and 11.04% discount for the last traded price and five-day volume weighted average market prices (VWAPs) of Signature’s shares up to March 27 of 94 sen and 94.42 sen, respectively.
For the one-month and three-month VWAPs of 91.87 sen and 88.68 sen, the offer price translates to discounts of 8.57% and 5.29%, respectively.
Meanwhile, for six-month and one-year VWAPs of 92.08 sen and RM1.10, the offer price represents a discount of 8.77% and 23.66%, respectively.
Chin Hin first bought into Signature in March 2021 at RM1.17 per share, when the group paid RM93.6 million to buy 80 million Signature shares.
In February, Chin Hin had said that it intends to maintain Signature’s listing status after the mandatory general offer (MGO), which has now been approved by a majority of Chin Hin’s shareholders at its extraordinary general meeting (EGM) on Friday.
Shares in Chin Hin settled 21 sen or 4.82% higher at RM4.57 on Friday, valuing the group at RM8.09 billion. Signature closed three sen or 3.19% higher at 97 sen, with a market capitalisation of RM626.13 million.