PETALING JAYA: Seremban Engineering Bhd (SEB) has received a mandatory general offer (MGO) from MIE lndustrial Sdn Bhd, which emerged as its new major shareholder, for 50 sen per share.
Earlier, MIE entered into two share sale agreements with Success Transformer Corp Bhd (STC), Omega Attraction Sdn Bhd, Tan Ah Bah @ Tan Ah Ping, Pan Kim Foon and Tan Chung Ling for the acquisition of a 69.72% stake in SEB for RM27.77 million.
The stake purchase triggered the 33% mandatory takeover threshold, hence MIE is extending its offer to acquire the remaining 30.28% stake that it does not own in SEB.
The offer price of 50 sen per share represents a premium of 15.2% against its five-day volume weighted average price of 43.4 sen.
SEB’s share price closed 4 sen higher at 44.5 sen today.
MIE intends to maintain SEB’s listing status on Bursa Malaysia.
SEB said the board will appoint an independent adviser to advise the company and its shareholders in respect of the fairness and reasonableness of the offer.
Meanwhile, STC said in a separate filing that its disposal of a 65.26% stake in SEB for RM26 million had taken into account SEB’s loss-making position of RM4.93 million for the audited financial year ended June 30, 2018 and the unaudited loss of RM4.7 million for 2019.
As SEB’s business will remain challenging going forward, STC said the disposal represents an opportunity for the group to monetise its investment in SEB.
STC disclosed that it intends to utilise RM11 million from the disposal proceeds as working capital, while RM14.8 million has been earmarked for future potential investments/acquisitions within 12 months.
With the disposal, the group’s gearing is also expected to reduce significantly. It will realloacate its resources to focus on the growth of its transformer and industrial lighting businesses.
source https://www.thesundaily.my/business/mie-industrial-emerges-as-seb-s-largest-shareholder-launches-mgo-XH1328451
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