Quick take: TA Global rises after SC rejected TA Enterprise’s takeover withdrawal

TheStar Wed, Jun 03, 2020 09:23am - 9 months ago

KUALA LUMPUR: Shares in TA GLOBAL BHD and TA Enterprise Bhd rose in early trade Wednesday after the Securities Commission (SC) rejected the latter's takeover withdrawal.

TA Global rose 9.52%, or two sen to 23 sen with over 10 million shares traded. TA Enterprise added 4.95%, or 2.5 sen to 53 sen.

TA Enterprise’s application to withdraw its conditional voluntary take-over offer of TA Global has been rejected by the SC after having considered the justifications provided on a holistic basis.

In arriving at its decision to reject TA Enterprise's applications, the SC said it had considered the justification provided by the applicant, the conduct of the applicant from the time of the announcement of the offer up to the date of application and precedents from other jurisdictions.

The SC also said that since the offer was made, it was likely that the share price of the company was supported by the offer price.

TA Enterprise on May 6 has submitted an application to ask the SC for permission to withdraw the offer made on Feb 12.

TA Enterprise has proposed acquiring up to 39.83% or 2.12 billion ordinary shares of TA Global in a bid to take the company private.

The proposed offer price was 28 sen per share or a share swap based on an exchange ratio of 0.4211 new ordinary share in TA Enterprise to be issued at 66.5 sen each for every TA Global share surrendered.

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