EG Industries gets offer to buy 17.5% stake in Singapore-listed firm for RM21.22m

TheEdge Tue, Dec 24, 2019 10:53pm - 4 years View Original


KUALA LUMPUR (Dec 24): EG Industries Bhd has received an offer to buy a 17.5% stake in Singapore-listed Jubilee Industries Holdings Ltd for S$6.95 million (RM21.22 million) in cash.

In a stock exchange filing, the electronic manufacturing services company said it received the offer from Accrelist Ltd, which owns 65.82% of Jubilee.

The exercise of the offer would be deemed a related party transaction as EG group executive chairman and major shareholder Datuk Terence Tea Yeok Kian is Accrelist's executive chairman, managing director and substantial shareholder.

Meanwhile, EG chief executive officer Alex Kang Pang Kiang is also a director in Jubilee's wholly-owned indirect subsidiary WE Total Engineering Sdn Bhd.

EG said Tea and Kang will abstain from voting on the matter given their positions in Accrelist and Jubilee.

"As at the date of this announcement, the board (excluding the interested directors) has not made a decision on the proposed transaction and the terms of the proposed transaction have yet to be finalised and agreed upon," added EG.

Jubilee is currently a major shareholder of EG, but has proposed to dispose of its 13.77% stake in EG to Tea for S$5.37 million.

Accrelist and Jubilee are both listed on the Singapore Exchange's Catalist board. Accrelist is mainly involved in the medical aesthetics business. It also has pharmaceutical and medical goods retail segment. In addition, it also has a technology arm for artificial intelligence systems integration, facial recognition technology, digital marketing services and cashless payment solutions.

Through Jubilee, Accrelist also has mechanical and electronic business units.

Jubilee, meanwhile, is principally involved in the provision of precision plastic injection moulding, mould design and fabrication services, integrated electronic components distribution services and modular design fabrication.

The transaction is subject to approval from both EG's and Accrelist's shareholders, as well as the allotment and issuance of conversion shares as part of conversion loan issued to Accrelist by Singapore Rixin Zhonghe Investment Pte Ltd.

Shares in EG closed 1.25% or half a sen lower at 39.5 sen today, giving the company a market capitalisation of RM108.63 million.

Meanwhile, Accrelist closed 11.9% or one cent lower at seven cents, giving it a market capitalisation of S$20.66 million. Accrelist saw 50,100 shares transacted.

Jubilee shares closed 27.5% or two cents higher at 10 cents, valuing the company at S$26.2 million. Jubilee saw 25,000 shares changing hands today.

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