KUALA LUMPUR (Oct 1): The mandatory general offer (MGO) for Eurospan Holdings Bhd (KL:EUROSP) by its new controlling shareholder, Samuel Ng Heng Hong, has closed with the acceptances pushing his stake in the furniture manufacturer to 84.11%.
AmInvestment Bank Bhd, acting on behalf of Ng’s private vehicle EC Synergy (M) Sdn Bhd, said valid acceptances totalling 4.43 million shares or 9.97% of Eurospan’s issued capital had been received when the offer closed on Wednesday.
Together with his earlier acquisition of a 74.14% block from Eurospan chairman Tan Han Chuan and his sister Tan Ching Ching, who was a non-executive director of the company, Ng now controls 37.36 million shares in Eurospan.
Independent adviser MainStreet Adviser Sdn Bhd had previously recommended that shareholders reject the RM2.30 per share offer, noting it was “not fair and not reasonable”.
While the price represented a 132% premium to Eurospan’s adjusted net asset value of 99 sen, it was at discounts of between 4.1% and 21.4% to the group’s recent volume-weighted average prices (VWAPs).
The adviser also argued that shareholders would be better off realising value on the open market, as Eurospan shares remain listed on Bursa Malaysia, though it cautioned that trading liquidity and price levels could fluctuate after the offer closes.
The MGO was triggered after Ng acquired the 74.14% stake for RM75.75 million from Han Chuan and Ching Ching, children of businessman Tan Sri Robert Tan Hua Choon, famously known as the “Casio King”.
It marked the second takeover offer for Eurospan in just over a year, following a RM1.70-per-share MGO launched by the siblings in May 2024.
Ng, who has more than 15 years of experience in the steel wire and building materials business, is the sole director of EC Excel Wire Holdings Sdn Bhd.
At market close on Wednesday, Eurospan’s shares were up 51 sen or 21.25% at RM2.91, giving the group a market capitalisation of RM129.27 million. Year to date, the stock has gained over 27%.