KUALA LUMPUR (Jan 7): Target 1 Sdn Bhd — one of the parties seeking to take South Malaysia Industries Bhd (KL:SMI) private — said on Tuesday that the Securities Commission Malaysia (SC) has approved a further extension for the despatch of its offer document to SMI shareholders.
The extension allows Target 1, and the parties acting in concert, to deliver the mandatory takeover offer documentation by Jan 14, an extension by seven days from the deadline of Jan 7 previously.
Target 1 is controlled by Francis Leong Seng Wui, who emerged as SMI's largest shareholder with a 30.67% stake after acquiring shares on the open market (15.52%) and via off-market trades (15.15%) in May and June last year.
Leong is the executive director of both Hong Seng Consolidated Bhd (KL:HONGSENG) and Revenue Group Bhd (KL:REVENUE).
The unconditional mandatory takeover offer, first initiated on Aug 20, 2024, aims to acquire all remaining ordinary shares of SMI not already owned by Target 1 and the parties acting in concert. The cash offer price remains at 45 sen per share.
Last month, Target 1 alleged that SMI was not cooperating to facilitate the extraordinary general meeting (EGM) scheduled for the coming Thursday (Jan 9), and the unconditional mandatory takeover offer.
The EGM is to be held to appoint six new directors to the company’s board, including former Perak police chief Datuk Pahlawan Mior Faridalathrash Wahid.
However, SMI said no EGM will be held on said date, and initiated legal action to halt the EGM.
SMI shares ended half a sen or 1.25% lower at 39.5 sen on Tuesday, valuing the group at RM82.93 million.
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