KUALA LUMPUR (July 25): ETA Industries Sdn Bhd’s stake in Rex Industry Bhd (KL:REX) rose to 55.04% on Friday at the close of its mandatory takeover offer for the remaining shares in the halal food canning group.
The stake, comprising, 361.99 million shares, represents an increase of 14.45% from the 52.22% stake (343.45 million shares) held by ETA, along with Lim Chin Hui and persons acting in concert, prior to the launch of the offer, according to a statement by UOB Kay Hian (M) Sdn Bhd on behalf of ETA.
Lim is the controlling shareholder and chief executive officer of ETA.
The offer was made after ETA acquired a 40.59% stake in Rex for RM26.81 million, or 10 sen per share, on June 13 from Darmendran Kunaretnam and Daiman Taipan Sdn Bhd. Also included in the deal was the acquisition of 39.18% of Rex's warrants at half a sen per warrant.
The offer price represents a slight 1% discount to Rex shares’ five-day VWAP (volume weighted average price), and a 70% discount to the three-month VWAP of its warrants — which are deemed as “not fair and not reasonable”, according to independent adviser cfSolutions.
ETA's stake in Rex warrants rose marginally to 39.19% from 39.18% via the takeover offer, according to the statement.
ETA has said it plans to maintain Rex's listing on Bursa Malaysia.
At Friday’s close, Rex’s shares were half a sen or 3.7% higher at 14 sen, with a market value of RM88.79 million. The counter has risen 40% year-to-date.