KUALA LUMPUR: Scomi Group Bhd's three-way merger proposal fell through after shareholders of its energy unit, Scomi Energy Services Bhd, rejected the offer at a court convened meeting (CCM) held here today.
This is despite the proposal having obtained approval from shareholders of Scomi Group during its extraordinary general meeting (EGM) conducted earlier this same day.
"As the 3-tier threshold required under Paragraph 2(f) of Schedule 3 of the Rules on Take-overs, Mergers and Compulsory Acquisition have not been met, the Scheme Resolution 1 is not carried," Scomi Energy told Bursa Malaysia in its filing today.
In August 2017, Scomi Group proposed merger with its listed subsidiaries — Scomi Energy and Scomi Engineering — via a share swap and warrants issuance, to reduce cost and strengthen its balance sheet.
The merger would have resulted in the privatisation of the two subsidiaries and Scomi Group selling off non-core assets to pare down debts.
Scomi Group currently holds a 66 per cent in Scomi Energy, and a 72 per cent in Scomi Engineering.