KUALA LUMPUR (April 3): JAG Capital Holdings Bhd has increased its shareholding in KUB Malaysia Bhd to 62.72% following the conclusion of a mandatory general offer (MGO).

In a bourse filing, Maybank Investment Bank, on behalf of JAG, stated that the mandatory general offer (MGO) at 60 per share was concluded on March 18, with JAG Capital acquiring an additional 163.82 million shares, representing 29.44% of KUB.

Additionally, it has received acceptances for 0.15% or 865,735 shares under the offer, subject to verification after the posting date and up to the closing date, as confirmed by UOB.

JAG triggered the MGO for KUB on January 9 this year after purchasing 1.79 million KUB shares in the open market, increasing its shareholding in the listed entity to 33.28%.

The offer follows a proposal to inject JAG’s 86.65% stake in cables and wire manufacturer Central Cables Bhd (CCB) into KUB in exchange for KUB preference shares, valued at RM119.42 million.

On March 4, JAG's conditional MGO became unconditional as its collective shareholding, together with persons acting in concert, surpassed 50%.

Nonetheless, independent adviser Inter-Pacific Securities Sdn Bhd recommended that KUB shareholders reject the MGO, deeming the offer "not fair and not reasonable."

JAG has stated that it does not intend to maintain KUB’s listing status if it secures 90% of all KUB shares, but would keep KUB listed if it secures between 75% and 90%.

It is noteworthy that JAG is controlled by Minister of Plantation Industries and Commodities Datuk Seri Johari Abdul Ghani, who holds a 98.75% stake in the company.

Shares in KUB closed half a sen or 0.85% lower to 58.5 sen on Wednesday, valuing the group at RM325.53 million.