Friday, June 18, 2010

MIG accepts takeover offer for M3nergy

KUALA LUMPUR: MELEWAR INDUSTRIAL GROUP BHD [] (MIG) has accepted the conditional takeover by Adamus Avenue Sdn Bhd (AASB) for the remaining shares in M3NERGY BHD [] and will dispose of its entire 22.3% stake in M3nergy for RM52.3 million, or RM1.85 per share.

In a statement on Tuesday, June 15, MIG said the proceeds from the sale of the stake comprising 28.25 million shares in M3nergy would be used as working capital and to reduce its bank borrowings within the next six months.

It said the disposal would result in a loss of RM4.7 million to the group. However, after taking into account the tax-exempt dividend of 25% or RM7 million received from M3nergy on Dec 10, 2009, a gain of about RM2.3 million will arise from the disposal.

AASB, a special purpose vehicle for the takeover offer, is directly owned by M3nergy group managing director and CEO Datuk Shahrazi Sha'ari and his spouse Datin Tinawati Nordin, who each holds a 50% interest in the company.


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