KUALA LUMPUR (Aug 20): Eurospan Holdings Bhd (KL:EUROSP) has received a mandatory takeover offer (MGO) from its new controlling shareholder, Samuel Ng Heng Hong, to acquire the remaining shares he does not already own in the furniture manufacturer.

This came after Ng, through his private vehicle EC Synergy (M) Sdn Bhd, bought a 74.14% stake in Eurospan from its chairman Tan Han Chuan and his sister Tan Ching Ching for RM75.75 million. The two are the children of businessman Tan Sri Robert Tan Hua Choon, who is also known as the Casio King.

Under Malaysian takeover rules, Ng is required to extend the same offer to minority shareholders. Prior to the acquisitions, EC Synergy and Samuel Ng did not hold any EHB shares, according to Eurospan’s filing with Bursa Malaysia on Wednesday.

This is the second time in more than a year Eurospan has received an MGO offer.

It is worth noting that back in May 2024, the Tan family launched an MGO for Eurospan at RM1.70 a share, after raising their stake in the company.

The current offer price by Ng of RM2.30 per share is 35% higher than the previous offer made by the Tan family.

Despite the premium over the previous MGO, the new offer represents a 26.5% discount to Eurospan’s last closing price of RM3.13 on Wednesday. However, based on the one-year volume-weighted average price (VWAP) of RM2.3984, the discount narrows to just 4.1%. At RM2.30 per share, Eurospan is valued at approximately RM139 million in market capitalisation.

Eurospan shares are thinly traded, with a 200-day average daily volume of 25,485 shares, or 0.06% of total shares outstanding.

Ng is also the sole director of EC Excel Wire Holdings Sdn Bhd and has over 15 years of experience in the manufacturing and trading of steel wire, galvanised wire and building materials. He does not hold any directorships or substantial interests in other listed entities.

Independent adviser BDO Capital Consultants Sdn Bhd previously deemed the RM1.70 offer by the Tan siblings as “fair” and “reasonable”, citing Eurospan’s illiquid trading and subdued share price performance. The stock had traded below the offer price for a year prior to the MGO, with average monthly volume over free float shares at just 0.5% — well below the 12.53% average for Bursa’s Consumer Products & Services Index.

Tan Han Chuan first emerged as a substantial shareholder in Eurospan on April 26, 2024. He currently serves as executive director of investment holding firm Jasa Kita Bhd (KL:JASKITA) and non-executive director of property developer JKG Land Bhd (KL:JKGLAND).

Eurospan, which primarily manufactures furniture and wood-based products, has seen its revenue decline steadily from RM52.6 million in FY2021 to RM21.8 million in FY2025.

Despite reporting a sharp rise in net profit to RM19.91 million in FY2025 from RM1.18 million the year before, the increase was largely attributable to RM27.84 million in gains from the disposal of two subsidiaries. Excluding these one-off gains, the group would have posted a net loss for the year.