KUALA LUMPUR (Jan 14): Target 1 Sdn Bhd announced that the Securities Commission Malaysia (SC) has given another seven days' extension for the company to deliver the mandatory takeover offer documentation to South Malaysia Industries Bhd’s (KL:SMI) shareholders.
Target 1 — one of the parties seeking to take the company private — now has until Jan 21 to deliver the mandatory takeover offer documentation to shareholders of SMI, said TA Securities Holdings Bhd in a statement on behalf of Target 1.
This marks the second time Target 1 has been granted an extension from the SC to deliver the document. The original deadline was Jan 7, and it had previously been extended for seven days until Jan 14.
The extension letter from the SC came a day after SMI announced to Bursa Malaysia that the company had filed a judicial review application with the Johor Bahru High Court last Friday (Jan 10) to seek permission to challenge the SC's decision, alleging that it had breached takeover rules designed to protect minority shareholders.
SMI is challenging the regulator’s decision to allow the appointment of six new directors nominated by a company seeking to take over SMI before the offer document has been dispatched.
Target 1, together with persons acting in concert (PACs) with it — Honsin Apparel Sdn Bhd and its sister company HiQ Media (M) Sdn Bhd — collectively controls 50.05% in SMI, triggering the mandatory takeover offer of SMI at 45 sen per share in August last year.
Target 1, which is controlled by Francis Leong Seng Wui, emerged as the SMI's largest shareholder with a 30.67% stake. It bought 15.52% on the open market plus 15.15% via off-market trades in May and June last year.
Leong is executive director of both Hong Seng Consolidated Bhd (KL:HONGSENG) and Revenue Group Bhd (KL:REVENUE). Honsin, meanwhile, is controlled by Techbase Industries Bhd (KL:TECHBASE), formerly known as Prolexus Bhd. Techbase also owns 51.91% of HIQ Media.
SMI was not traded on Tuesday. The shares were last traded at 38 sen, giving the group a market capitalisation of RM78.78 million.