KUALA LUMPUR (Sept 17): The mandatory takeover offer (MTO) for Watta Holding Bhd shares at 50 sen per unit by executive deputy chairman and CEO Datuk Lee Foo San and two other persons acting in concert (PACs) was unsuccessful after the offer closed at 5pm today.

In a filing with Bursa Malaysia, Watta said Lee and the PACs’ collective shareholding in the group stood at 38.97 million shares representing a 46.12% stake, after receiving 3,678 shares in Watta it did not already own before the closing date.

“The offeror did not receive valid acceptances of the offer shares which would result in the offeror and the PACs holding together more than 50% of the voting shares in Watta. As such, the acceptance condition has not been fulfilled.

“Accordingly, the offeror shall return all Watta shares which have been transferred into the Central Depository System account of the offeror pursuant to the offer to the respective accepting holders, followed by a notice of transfer which will be despatched to the accepting holders in due course,” it said.

The MTO was made following the acquisition by Lee of 11.14 million shares, or a 13.19% stake, in Watta at 50 sen per share on Aug 5.

Post-acquisition, Lee’s shareholding in Watta increased to 45.99% from 32.80%.

The PACs with Lee in relation to the takeover offer are his brother Lee Fook Sin (holding 112,000 shares or a 0.13% stake in Watta) and his brother-in-law Teoh Chee Kheong.

The takeover parties, who collectively hold a 46.12% stake in Watta, had said they intend to maintain the listing status of the company.

Watta’s share price closed unchanged today at 80 sen with only 3,000 shares traded. This gave the counter a market capitalisation of RM67.58 million.