Magna Prima’s largest shareholders end takeover offer with 54.96% stake

• The offerors—through Hallson Holdings Sdn Bhd—received 76.78 million shares or a 19.23% stake in valid acceptances by the close of the unconditional mandatory takeover offer on Thursday, bumping up their collective stake to 54.96% or 219.39 million shares, according to a press notice from AmInvestment Bank Bhd on behalf of the offerors.

KUALA LUMPUR (Nov 6): Magna Prima Bhd (KL:MAGNA) announced that its largest shareholders—Datuk Seri Wong Sze Chien and managing director Seah Ley Hong—closed their mandatory takeover offer with a 54.96% stake in the company.

The offerors—through Hallson Holdings Sdn Bhd—received 76.78 million shares or a 19.23% stake in valid acceptances by the close of the unconditional mandatory takeover offer on Thursday, bumping up their collective stake to 54.96% or 219.39 million shares, according to a press notice from AmInvestment Bank Bhd on behalf of the offerors.

Prior to the takeover offer, the offerors held a 35.73% stake or 142.61 million shares in Magna Prima.

The offer’s deadline was previously extended to Nov 6 from Oct 30, after it turned unconditional.

Wong and Seah, in their mandatory takeover offer, said they intended to maintain Magna Prima’s listing on the Main Market of Bursa Malaysia.

The offer’s valid acceptances represent only 29.9% of the 256.55 million shares they did not own at the time of the offer—short of the 90% requisite threshold. 

Independent adviser UOB Kay Hian (M) Sdn Bhd deemed the offer “unfair” as it represented a discount to Magna Prima's latest unaudited net asset value, but “reasonable” as it offers shareholders an immediate opportunity to realise their investment in cash at a premium over prevailing market prices.

The offer was triggered after Hallson raised its stake in Magna Prima to 35.73%, following the acquisition of a 5.66% block from Prisma Pelangi Sdn Bhd for RM16.5 million in September.

Shares in Magna Prima ended unchanged at 72 sen on Thursday, valuing the company at RM289.04 million.

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