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Categories
| Temasek offers RM2.10 for LKT shares |
| Business & Market 2009 | |||
| Written by Joy Lee | |||
| Friday, 30 October 2009 11:22 | |||
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Yesterday LKT disclosed that SEP, a unit under the Temasek Holdings stable, has offered RM2.10 to mop up the remaining 14.24% it does not own in the automation equipment manufacturer. SEP does not intend to keep LKT listed. The offer price of RM2.10 per share is at a 30 sen premium over its last traded price of RM1.80 before trading was suspended on Tuesday. However, the offer price is 40% lower than its offer price of RM3.50 per share when Temasek first proposed to take LKT private two years back. The counter will resume trading today. Temasek would be forking out a total of RM21.196 million to acquire the remaining 10.09 million shares. The second largest shareholder of LKT, Datuk Loh Khee Lian, holds a 3.83% stake in the company. Prior to SEP’s entry into LKT in January 2008, Loh was the single largest shareholder in LKT with 20% followed by Lembaga Tabung Haji. Both Loh and Tabung Haji accepted LKT’s first offer at RM3.50. The latest offer would have to get shareholders’ approval and an independent adviser will be appointed to evaluate the proposed delisting and proposed exit offer. LKT, in an announcement to Bursa Malaysia yesterday, said the move to delist the company was because it could not find a solution to restoring its public shareholding spread which arose from Temasek’s MGO for the remaining LKT shares it did not own in January 2008. Temasek, after a series of acquisitions including from Loh and Tabung Haji, had increased its stake in LKT to 46%. It triggered the MGO at RM3.50 per share. Upon completion of the MGO, Temasek owned approximately an 86% equity stake in the company, which resulted in non-compliance with Bursa’s listing requirements which state that at least 25% of total listed shares must be in public hands. Temasek had announced a proposed selective capital repayment exercise for LKT shares that it owned and issuance of irredeemable convertible preference shares of RM1 each in LKT to be credited as fully paid-up in efforts to rectify its public shareholding spread. However, the proposal was deferred in November last year due to the economic downturn. “The proposed delisting and proposed exit offer also provide the minority shareholders of LKT with an exit route for their investments to compensate for a lack in liquidity in the trading of LKT shares as a result of the minimal public shareholding spread,” LKT said in an announcement to the bourse. This article appeared in The Edge Financial Daily, October 30, 2009.
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