KUALA LUMPUR (July 11): Power tool and industrial equipment maker Jasa Kita Bhd (KL:JASKITA) on Friday announced that its two largest shareholders, executive chairman Tan Sri Robert Tan Hua Choon and son, executive director Datuk Seri Tan Han Chuan, have received a conditional buyout offer at 38 sen per share, valuing their entire stake in the company at RM68.89 million.
The offer comes from an oil and gas veteran with over 40 years experience, Abd Azis Mohamad and his investment firm Kintan Prima Sdn Bhd. Abd Azis is working with his wife, former Malaysia Digital Economy Corporation chief executive officer (CEO) Datuk Yasmin Mahmood (who owns 20% of Kintan Prima), and his brother-in-law, Boustead Holdings Bhd executive director Datuk Iskandar Mizal Mahmood (who recently bought a 5% stake) for the deal.
The offer covers Hua Choon’s 31.89% and Han Chuan’s 8.44% interests, and is slightly above the last traded price of 36.5 sen.
The deal depends on the sale of four industrial land plots in Jalan Batu Caves for RM38 million to Hua Choon’s company, Logik Damai. The sale needs shareholder approval.
In a filing, Jasa Kita said it plans to use RM16.76 million — over half of the RM29.51 million net gain from the land sale — to help fund a 12 sen per share special dividend. The rest will be used for working capital. The dividend date will be announced later.
Abd Azis, who already owns 4.69% of Jasa Kita, says the company fits well with his oil and gas businesses. If the deal goes through, his group’s stake will rise to 50.12%, triggering a mandatory offer to buy the remaining shares for 38 sen a share.
Maybank Investment Bank Bhd is advising on the deal, with Astramina Advisory Sdn Bhd as the arranger.
Jasa Kita shares, suspended on July 11, will resume trading on July 14. The stock closed at 36.5 sen on Thursday, up 7.35%, and has gained over 21% since Monday. The company is now valued at RM164.09 million.