KUALA LUMPUR (Oct 12): United Malacca Bhd (KL:UMCCA) said minority shareholders will be compensated for missing a general offer that should have been launched in 2024.

In addition to the general offer of RM6.10 a share, Tee Kim Tee @ Tee Ching Tee and his brother Tee Cheng Hua will pay shareholders who sold between Sept 26, 2024 and Oct 9, 2026 the difference to the offer price as remedy, according to a notice posted to the exchange.

Claimants will need to submit documents prove the sale though they will not be compensated for any brokerage fees, stamp duty or other costs incurred with the transaction, the notice read.

The unusual step comes as the Tee brothers had previously exceeded the 33% threshold on September 26, 2024 but failed to make a mandatory general offer. The Tee brothers bought another 13% at RM6.10 per share on Oct 12.

A review in preparation of the latest transaction then discovered that the Tee brothers and their connected parties have actually racked up a little over 34% in United Malacca, and now had nearly 48% post-acquisition.

Under Malaysian takeover rules, a shareholder is mandated to extend a general offer when they acquire, hold, or control more than 33% in a company.

Still, the Tee brothers said they had no intention to privatise the company founded by the late Tun Tan Cheng Lock, the first president of the Malayan Chinese Association.

The offer price represents a premium of just 2.5% to United Malacca’s last price of RM5.95 on Oct 9 before the offer was made. On a one-year volume-weighted basis, the takeover offers a gain of 6.3%.

Shares of United Malacca were up by one sen or 0.2% to RM5.96 on Monday’s noon break, giving the company a market capitalisation of RM1.25 billion.