KUALA LUMPUR (Feb 3): MyTech Group Bhd’s (KL:MYTECH) conditional mandatory takeover offer by executive chairman Tan Sri Cheng Joo Teik closed on Tuesday (Feb 3) with the offeror and persons acting in concert (PACs) securing a 56.09% stake in the company.
The final level of acceptances comprised 21.1 million shares or 8.57% of MyTech’s issued capital, received between the posting date on Jan 2 and the 5pm deadline on Feb 3.
Cheng and the PACs had entered the offer period with a 47.52% stake, according to the closing notice issued by AmInvestment Bank on behalf of the offeror and ultimate offeror.
The mandatory takeover was triggered after Cheng raised his stake to 42.51% in early December via Gain Millen Sdn Bhd through the purchase of a 17.77% block from sellers that included Zetrix AI Bhd (KL:ZETRIX) group managing director Wong Thean Soon.
The offer was priced at 30 sen per share, valuing MyTech at RM73.84 million at the time of announcement.
Independent adviser DWA Advisory Sdn Bhd had recommended that minority shareholders reject the offer, deeming it “not fair and not reasonable” as the price represented a discount to MyTech’s market price and its estimated fundamental value.
DWA Advisory also noted that Cheng intends to maintain MyTech’s listing status, which the adviser said further reduced the rationale for acceptance.
MyTech operates in precision spring manufacturing and credit financing, with the latter becoming a larger contributor following a diversification move unveiled in November.