KUALA LUMPUR (May 13): KUB Malaysia Bhd's (KL:KUB) has raised its stake in Central Cables Bhd (CCB) to 98.92% at the close of its mandatory general offer (MGO) for the remaining CCB shares on Monday.
Maybank Investment Bank, on behalf of KUB, said it will proceed to compulsorily acquire for KUB — and persons acting in concert — any remaining offer shares, given that it has received valid acceptances of not less than nine-tenths of the value of CCB’s shares.
KUB, whose largest shareholder is Plantation Industries and Commodities Minister Datuk Seri Johari Abdul Ghani, had November last year signed a deal to acquire an 86.65% stake in CCB, comprising 45.92 million shares, for RM119.42 million.
After the completion of the acquisition, KUB launched an unconditional MGO last month to acquire the remaining shares in CCB at RM2.60 per share, or via the issuance of new shares in KUB at an issue price of 60 sen per share.
The MGO closed on Monday after being extended twice.
KUB previously said that 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.
CCB was incorporated in 1967 and is principally involved in the manufacturing of power cables and wires.
Shares in KUB finished a sen or 1.38% higher at 73.5 sen on Monday, giving the group a market capitalisation of RM406.2 million.