KUALA LUMPUR: Furniture maker SYF Resources Bhd has obtained conditional approval from the Securities Commission (SC) for a reverse takeover by M&A Securities Sdn Bhd, the stockbroking arm of Insas Bhd.

SYF said the reverse takeover would be carried out in tandem with various proposals.

It said that chiefly, the reverse takeover would involve SYF acquiring 100 per cent of M&A Securities for RM222 million, which would be satisfied through the issuance of 1.01 billion SYF shares to Insas at 22 sen each.

"An exemption to Insas from undertaking a mandatory offer on SYF will be sought from the SC in due course following SYF shareholders' approval," it said in a statement today.

As part of the reverse takeover proposals approved by the SC, SYF will dispose of its rubberwood furniture manufacturing arm Seng Yip Furniture Sdn Bhd for RM50 million cash and two parcels of freehold land in Cheras for RM21 million cash.

Thereafter, SYF said it would distribute 18 sen per share to its shareholders via special dividend and/or capital repayment.

"A fundraising exercise involving the issuance of 284 million SYF shares to shareholders via a rights issue and up to 158 million SYF shares to eligible directors and employees and persons who have contributed to the success of M&A Group will also be undertaken.

"At an issue price of RM0.22 per share, the fundraising exercise will raise a total of up to RM97 million," it said.

SYF will be renamed M&A Equity Holdings Bhd to reflect its new core business in the financial services industry.

SYF intends to obtain its shareholders approval for the proposals by the middle of January next year.