Saturday, July 23, 2011

Eng Tek major shareholders in RM307m pvte offer

KUALA LUMPUR: The major shareholders of ENG TEKNOLOGI HOLDINGS BHD [], who own 23.21% of the Penang-based company, have made a takeover offer of the remaining shares in a RM307 million corporate exercise.

TYK Capital Sdn Bhd had on Friday, July 22 had offered to acquire the entire business and undertakings (including all the assets and liabilities), for RM2.50 per share.

This is 12 sen above the last trading price of RM2.28. The share price closed 14 sen higher at RM2.28 on Friday.

According to TYK's announcement, the offer price shall be RM246.4 million in cash and RM60.80 million as the amount remaining owing by TYK to Eng Tek.

The shareholdings of TYK showed that Datuk Teh Yong Khoon 94.9% of TYK (he is also Eng Tek co-founder and chief operating officer) while Datin Low Yeow Siang owns 0.1% of TYK and Singapore-incorporated Advance Capital Partners Pte Ltd the remaining 5.0%.

TYK Capital has confirmed it has sufficient financial resources to undertake the proposed acquisition. Teh and Low collectively hold 28.22 million Eng Tek shares or 23.21%.

The offer shall remain open for acceptance until 5pm on Aug 5.

Under the exercise, TYK would also acquire all the employees share option scheme (ESOS) options at the scheme's intrinsic value, which is the positive difference between the offer price per share and the ESOS exercise price.

The intrinsic value of the ESOS options ranges from RM0.00 up to RM1.37 per option under the different tranches. Of the total 4.659 million ESOSoptions, it said 4.089 million ESOS options are in-the-money.

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