KUALA LUMPUR (Aug 10): Hextar Retail Bhd (KL:HEXRTL) has received a conditional voluntary takeover offer from its major shareholders at a cash offer of 43 sen per share.

The 43 sen offer price represents a 7.5% premium to Hextar Retail's closing price of 40 sen last Friday (Aug 7), the company announced in a bourse filing Monday.

The offer price also represents a price-to-book multiple of approximately 1.05 times based on its consolidated net assets per share of about 41 sen as at March 31, 2026.

Formerly known as Classic Scenic, the group is principally engaged in the manufacturing of wooden picture frame moulding. The group currently operates nine factories in Rawang in Selangor and Bidor in Perak.

In addition to the picture frame moulding business, the group has ventured into food and beverage and apparel industries in late 2023.

The offer was made by Datuk Ong Choo Meng and the person acting in concert with him, Ong Kook Liong.  

Choo Meng's wholly-owned investment vehicle, Hextar Portfolio Sdn Bhd, holds 142.29 million shares or a 30.6% stake in Hextar Retail, in which he first emerged as a substantial shareholder in March 2021 after acquiring a 14.938% stake.

Kook Liong, who is also the managing director of KIP Real Estate Investment Trust (KL:KIPREIT) owns a 0.6% stake or three million shares in Hextar Retail.

The duo intends to maintain Hextar Retail’s listing status on the Main Market of Bursa Malaysia following the takeover.

Choo Meng also holds substantial holdings in various listed companies on the bourse, including: Hextar Global Bhd (KL:HEXTAR), KIP REIT, Hextar Healthcare Bhd (KL:HEXCARE), Hextar Industries Bhd (KL:HEXIND), Hextar Technologies Solutions Bhd (KL:HEXTECH), Hextar Capital Bhd (KL:HEXCAP).

Separately, Hektar Real Estate Investment Trust (KL:HEKTAR)announced that Choo Meng had ceased to be a substantial unitholder of the REIT after disposing of 7.135 million units, equivalent to 1.006% of total units, via the open market last Friday (Aug 7). This trimmed his unitholding to 35.45 million or 4.998%.

Shares in Hextar Retail closed half a sen or 1.25% higher at 40.5 sen on Monday, giving the group a market capitalisation of RM203 million. The stock is down nearly 14% since a year ago.