KUALA LUMPUR (Dec 12): Mytech Group Bhd (KL:MYTECH) has received a conditional mandatory takeover offer from its executive chairman Tan Sri Cheng Joo Teik to acquire all remaining shares he does not already own at 30 sen per share, after he upped his stake in the company by 17.7%.

The offer represents a 7.69% discount to the last traded price and 5.8% lower than Mytech’s recent five-day average share prices of 32.5 sen and 31.86 sen.

Cheng, through his private vehicle Gain Millen Sdn Bhd, purchased a 17.77% stake from sellers including Zetrix AI Bhd (KL:ZETRIX) managing director Wong Thean Soon, better known as TS Wong, for RM13.1 million. Cheng now owns a 42.51% interest in Mytech.

According to the filing with Bursa Malaysia, Wong sold 42.4 million shares for 30 sen each, totalling RM12.7 million, making him cease to be a substantial shareholder in the company. He retains an 1.8% indirect stake through Asia Internet Holdings Sdn Bhd.

Cheng and his son Heng Lee — who is also an executive director of the company, are among persons acting in concert (PACs) in the offer.

Cheng has indicated that he plans to maintain Mytech’s listing on the Main Market of Bursa Malaysia.

Mytech, formerly known as Widetech (M) Bhd, is principally engaged in the manufacture of precision springs, credit financing services, as well as management and rental of properties.

Mytech shares last traded at 32.5 sen, giving the company a market valuation of RM80 million.