KUALA LUMPUR (Jan 23): Southern Score Builders Bhd (KL:SSB8) said its bid to take over LEAP Market-listed Nova Pharma Solutions (NPS) has crossed the crucial 90% threshold a day after an independent adviser on the deal asked shareholders to accept it, calling it not fair but reasonable.
In its bourse filing on Friday, Southern Score said it has accumulated 90.834% of NPS’ total issued shares as at Jan 23, allowing it to compulsorily acquire any shares it does not own in the company to delist it.
The offer will remain open for acceptances until 5pm on Feb 4.
In a statement on Friday, Kenanga Investment Bank, acting on behalf of Southern Score, said the offeror does not intend to maintain the listing status of NPS on the LEAP Market of Bursa Malaysia.
By 5pm Friday, Southern Score had received valid acceptances of 17.389%. Southern Score already owns 73.445%.
Mainstreet Advisers Sdn Bhd, in the independent advice circular filed with Bursa Malaysia on Thursday, said the price is at an almost 18% discount to the 45.1 sen value it has attached to NPS’ shares. However, it presents an exit opportunity for NPS shareholders in light of the limited liquidity of the stock which trades on the platform strictly for sophisticated investors.
In December last year, Southern Score offered a deal worth over RM14 million to take over NPS. The mandatory takeover at 37 sen per share was triggered after Southern Score acquired 33% of NPS from the LEAP Market firm’s chief executive officer Khoo Boo Wie.
NPS was 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.
On Friday, Southern Score’s share price settled unchanged at 58.5 sen, bringing the group a market capitalisation of RM1.33 billion.