Thursday, November 25, 2010

Javace advises UBG minority shareholders to take up its offer

KUALA LUMPUR: Javace Sdn Bhd, a unit of PetroSaudi International Ltd, has advised the minority shareholders of UBG BHD [] to take up its offer of RM2.50 a share.

The deadline for the offer was extended to Dec 17. The offer was made by to privatise UBG and its two subsidiaries PUTRAJAYA PERDANA BHD []'' and Loh & Loh Corporation Bhd.

Javace said on Thursday, Nov 25 the minority shareholders would not have many avenues to exit their investment once UBG was delisted.

Early this year, PetroSaudi International acquired the entire stakes in UBG held by Majestic Masterpiece Sdn Bhd, Concordance Holdings Sdn Bhd and PPES Works (Sarawak) Sdn Bhd.

Majestic Masterpiece was then the single largest shareholder in UBG with a 52.62% interest. Concordance Holdings owned 28.29% while PPES controlled another 8.92% of UBG shares. Concordance Holdings and PPES are subsidiaries of CAHYA MATA SARAWAK BHD [].

The earlier acquisitions gave PSI an 89.83% stake in UBG. It had on Oct 20, via Javace, made the cash offer for the remaining shares in UBG that it did not already own.

In line with the offer for UBG, Javace extended its mandatory takeover offer for all remaining shares in Putrajaya Perdana and Loh & Loh not held by UBG. The offer was RM4.85 per share for both companies. The offer for these two companies closed on 10 November 2010.

Trading of UBG shares was suspended on Nov 2 and six days later, trading on PPB and LLCB shares was similarly suspended.

Javace has initiated the steps to withdraw the listing status of Putrajaya Perdana and Loh & Loh and is expected to do the same for UBG after the Dec 17 deadline.

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