KUALA LUMPUR (Feb 4): Target 1 Sdn Bhd, one of the parties acting in concert to take over South Malaysia Industries Bhd (KL:SMI), has received another seven-day extension to deliver the offer document to the latter’s shareholders.
In a statement on Tuesday, the new deadline for the submission has been extended to Feb 11.
This is the fourth extension the Securities Commission (SC) has granted Target 1 to deliver the document. The initial deadline was on Jan 7.
Target 1, together with persons acting in concert (PACs) with it, Honsin Apparel Sdn Bhd and HiQ Media (M) Sdn Bhd, collectively control 50.05% in SMI, triggering the mandatory takeover offer of the company at 45 sen per share in August last year.
Target 1, controlled by Francis Leong Seng Wui, emerged as SMI’s largest shareholder with a 30.67% stake after it acquired 15.52% on the open market and another 15.15% via off-market trade in May and June last year.
Leong is an executive director of both Hong Seng Consolidated Bhd (KL:HONGSENG) and Revenue Group Bhd (KL:REVENUE).
Meanwhile, Honsin is controlled by Techbase Industries Bhd (KL:TECHBASE), formerly known as Prolexus Bhd. Techbase also owns 51.91% of HiQ Media.
Amid Target 1’s takeover offer, SMI has brought the SC to court to challenge the regulator’s decision to allow the appointment of six new directors nominated by Target 1 before the official offer document has been circulated to shareholders.
SMI shares were untraded on Tuesday. The shares were last traded at 38.5 sen on Jan 31, valuing the group at RM79.79 million.