Monday, October 17, 2011

Leader shareholders make RM480m takeover offer

KUALA LUMPUR: LEADER UNIVERSAL HOLDINGS BHD []'s top officials, via HNG Capital Sdn Bhd, have made a takeover offer for the company for RM480.10 million or RM1.10 per share. This is 26 sen above the last traded price of 84 sen.

Leader said on Monday, Oct 17 the purchase consideration would be RM410.94 million in cash and RM69.16 million as an amount remaining due and owing by HNGC as a debt due to Leader.

'Upon completion of the proposed acquisition, HNGC has proposed that Leader undertakes a distribution of the entire proceeds arising from the proposed acquisition to all entitled shareholders of Leader,' it said.

To recap, the top officials involved in the takeover are Datuk Seri H'ng Bok San, the executive deputy chairman of Leader, Datuk H'ng Chun Hsian, who is the managing director and CEO of Leader and Datin H'ng Hsieh Ling, who is the group chief financial officer.

H'ng Bok San holds 30% of HNG Capital while H'ng Chun Hsian owns 40% and H'ng Hsieh Ling the remaining 30%.

Leader said HNG Capital had proposed a capital reduction and repayment exercise of RM1.10 per Leader share in cash to all the entitled shareholders of Leader other than H'ng Bok San, Datin Seri Ang Gaik Nga, H'ng Chun Hsiang, H'ng Hsieh Ling, H'ng Hsieh Fern, Datuk Jong East Full and Zun Holdings Sdn Bhd.

'The identified shareholders will authorise Leader to apply the cash entitlement of the identified shareholders under the proposed distribution to be set-off against the deferred amount,' it said.

As at Oct 14, the identified shareholders collectively hold 62.87 million Leader shares or 14.41%.

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