KUALA LUMPUR (Dec 22): Southern Score Builders Bhd (KL:SSB8) is offering to take over engineering services firm Nova Pharma Solutions Bhd in a deal worth over RM14 million.

The mandatory takeover at 37 sen per share was triggered after Southern Score acquired 33% of Nova Pharma from the LEAP Market firm’s chief executive officer Khoo Boo Wie on Monday, a bourse filing showed. The offer will not be extended to Khoo and Nova Pharma’s executive director Ter Leong Tah.

“The offeror does not intend to maintain the listing status” of Nova Pharma on the LEAP Market if the takeover is successful.

Nova Pharma is listed on the LEAP Market, in which trading is available only to sophisticated investors, back in 2018 at an initial public offering price of 20 sen per share.

Khoo still owns 36% of Nova Pharma while Ter holds a 4% stake in the company that mainly provides engineering services to the pharmaceutical and biotechnology industries. Both pledged to remain as executive directors after the takeover.

Khoo is guaranteeing a cumulative profit after tax of at least RM15 million over the 18-month financial period ending June 30, 2026 (FY2026), and as well as FY2027 and FY2028 of the earn-out period.

He has also granted Southern Score, among others, a first right of refusal to purchase his remaining shares in Nova Pharma in the event of any post-acquisition disposal.

Kenanga Investment Bank is acting on behalf of Southern Score for the takeover.