KUALA LUMPUR (April 26): KUB Malaysia Bhd has extended the deadline for its mandatory general offer for Central Cables Bhd (CCB) a second time to May 20 from April 30, according to its latest filing on Bursa Malaysia.

The group, however, did not reveal its rationale for the extension.

As of Friday, KUB controls a 97.34% stake comprising 51.59 million shares in CCB.

To recap, on Nov 21, 2023, Maybank Investment Bank had, on behalf of KUB, announced that KUB had entered into a conditional share purchase agreement for the proposed acquisition of 45.92 million CCB shares, representing approximately 86.65% equity interest in CCB, for a purchase consideration of RM119.42 million.

The consideration was to be satisfied wholly via the issuance of 199.04 million new KUB shares at an issue price of 60 sen per share to JAG Capital Holdings Sdn Bhd. JAG is an investment vehicle of Minister of Plantation Industries and Commodities Datuk Seri Johari Abdul Ghani.

However, the mode of settlement for the purchase consideration was revised on January 8.

The variation in the mode of settlement for the purchase consideration was from the issuance of the new KUB shares at an issue price of 60 sen per KUB share, to the issuance of 199.04 million new redeemable convertible preference shares (RCPS) at the same issue price.

The acquisition would enable the group to venture into the manufacturing of power cables and wires, which is an upstream activity within the value chain of the power industry that will integrate well with its existing power business under wholly owned subsidiary KUB Power Sdn Bhd.

After the completion of the acquisition, KUB extended an unconditional mandatory general offer last month to acquire the remaining stake in CCB for RM2.60 per share, or via the issuance of new shares in KUB at an issue price of 60 sen per share.

CCB was incorporated in 1967 and is principally involved in the manufacturing of power cables and wires.

Shares of KUB closed up half a sen or 0.77% to 65.5 sen on Friday, valuing the group at RM365 million.