Lotus KFM directors fail in MESB takeover bid after attracting zero acceptance for remaining shares

TheEdge Mon, Nov 23, 2020 08:45pm - 4 months ago

KUALA LUMPUR (Nov 23): Lotus KFM Bhd directors Wong Sak Kuan and Yau Ming Tek, who launched a general offer for MESB shares last month, have failed to secure any acceptance from shareholders of the leather products maker.

At the close of the offer today, the number of MESB shares held by Yau and Wong remained at 46.83 million, representing a 44.14% stake, according to statement issued on their behalf by KAF Investment Bank.  

On Oct 12, the duo had raised their stake in MESB to 44.14% from 16.35%, after acquiring 29.49 million shares in the company for RM8.85 million or 30 sen per share.

The increase in stake to 44.14% had triggered the threshold for a mandatory general offer (MGO) from the two. Under the MGO, Yau and Wong offered 31.5 sen per share for all the MESB shares they did not own, and also 1.5 sen for each MESB warrant.

“The joint offerors did not receive any valid acceptances of the offer shares, which would result in the joint offerors holding more than 50% of the voting shares in MESB. As such, the acceptance condition has not been fulfilled,” said KAF in its statement.

Wong is vice chairman and major shareholder of Lotus KFM, while Yau is a director of Lotus KFM, cum-substantial shareholder. Yau sits on the boards of HLT Global Bhd and UMS-Neiken Group Bhd

Shares in MESB finished 7.69% or 3.5 sen higher at 49 sen today, valuing the group at RM51.99 million. Lotus KFM closed unchanged at 27 sen, with a market capitalisation of RM194.12 million.

Related Stocks

HLT 1.070
LOTUS 0.260
MESB 0.520
UMSNGB 1.030


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