KUALA LUMPUR: Hovid Bhd, the pharmaceutical company which had its manufacturing licences of two of its plants revoked in January this year, has received a conditional voluntary takeover offer by its managing director David Ho and Fajar Astoria Sdn Bhd, which will result in the company being taken private.
Ho and Fajar Astoria will acquire 66.28 per cent stake and 56.43 per cent five-year warrants not already owned in Hovid for 38 sen per share and 20 sen per offer warrant.
In a takeover offer notice to Hovid, Ho and Fajar Astoria said they do not intend to maintain the listing status of the former.
"If the de-listing of Hovid from the official list is successful, the shares and warrants will no longer be traded on the main market of Bursa Malaysia,” they said in a filing to Bursa Malaysia yesterday.
Further, the offer price for each share is 18.75 per cent premium to the last transacted price at 31 sen on October 6.
The warrant offer price also has a premium of 42.86 per cent from the last transacted price at 14 sen.
Fajar Astoria said the offer will not fail due to insufficient financial capability and that every shareholder who wishes to accept the offer will be paid in full by cash.
Fajar Astoria currently owns 100 per cent of TAEL Astoria Investments Ltd, TAEL Pantaleon Investments Ltd and TAEL Two Partners Ltd.
TAEL Two Partners has 0.02 per cent stake in Hovid.
Early this year, Hovid’s manufacturing licences were revoked by the Health Ministry due to non-compliance with the Current Good Manufacturing Practice.
As a result, it reported its first quarterly loss of RM4.14 million in about six years in the January-March 2017 quarter.
The pharmaceutical company however managed to receive the license on May 5 for its Chemor plant in Ipoh.