KUALA LUMPUR: South Malaysia Industries Bhd (SMI) has received a takeover offer valued at over RM47 million from a group of major shareholders.
The shareholders—Francis Leong and two subsidiaries of Techbase Industries Bhd—are offering 45 sen per share to acquire the remaining shares they do not already own, according to its filing with Bursa Malaysia Securities.
They now control more than half of the issued shares in SMI.
Meanwhile, in a separate filing, Techbase Industries Bhd announced that its subsidiaries, Honsin Apparel Sdn Bhd (HASB) and HiQ Media (Malaysia) Sdn Bhd (HMSB), signed a collaboration agreement with Target 1 Sdn Bhd (TSB) to form a strategic alliance to attain control of SMI.
This collaboration involves key agreements, including the recognition of HASB, HMSB, and TSB as a group holding more than 33 per cent of SMI's shares.
This has triggered the obligation to extend a mandatory general offer (MGO) to acquire the remaining shares of SMI not already held by the involved parties."Through the collaboration agreement, Honsin and HiQ are looking forward to working with T1 to achieve their common objective by improving the operational efficiency of the Target Co and enhance the value of shareholders' of the Target Co," it said.
Techbase said the company collaboration agreement is not subject to the approval of the company's shareholders.
SMI shares closed five sen or 12.35 per cent higher to 46 sen, valuing the company at RM94.36 million. Meanwhile, trading in Techbase was halted since 3.58pm today and will resume at 9am tomorrow.