KUALA LUMPUR: The board of Leader Universal Bhd has accepted the offer from substantial shareholder HNG Capital Sdn Bhd to acquire the group’s entire business and undertakings including assets and liabilities for RM480.1 million.
In a filing with Bursa Malaysia yesterday, AmInvestment Bank Bhd said Leader’s board — excluding the interested directors — had decided to accept HNG Capital’s offer subject to the execution of a definitive conditional sale and purchase agreement.
“Accordingly, the board (other than the interested directors) does not intend to seek alternative bids,” AmInvestment Bank said.
To recap, HNG Capital had on Oct 17 offered to acquire Leader Universal’s business and undertakings, including assets and liabilities, for a total consideration of RM480.1 million, which will be settled by cash and debts. HNG Capital is to satisfy 85.6% of the total purchase consideration via RM410.94 million cash with the remaining 14.4% in the form of a RM69.16 million debt due to Leader.
HNG Capital is the vehicle of the H’ng family, that has a 14.4% stake in Leader, which is primarily involved in manufacturing wire and cables for the telecommunications and power industry.
The H’ng family will not be entitled to the cash distribution of RM410.94 million to be made to shareholders, who will receive RM1.10 cash per share.
The deal values Leader’s business at 8.6 times annualised earnings for FY11 ending Dec 31 of RM55.83 million.
The offer price of RM1.10 per share is lower than Leader’s net asset value of RM1.36 per share as at June 30 but is a 30.95% premium to its closing share price of 84 sen before the offer was announced.
Leader shares had chalked up gains a week before HNG Capital’s offer was announced, surging 18.3% over a week from 71 sen on Oct 7 to 84 sen on Oct 14.
Its shares surged 17.3% or 14.5 sen to 98.5 sen on Oct 18, a day after a suspension of the trading of the shares was sought, pending the offer announcement.
This was the steepest one-day gain for Leader shares in over 10 years.
The stock closed yesterday unchanged at 95.5 sen with 1.27 million shares traded.
The group’s board had appointed AmInvestment Bank and OCBC Advisers (Malaysia) Sdn Bhd its main adviser and financial adviser for the proposals, while Kenanga Investment Bank Bhd was appointed the independent adviser to advise the non-interested directors and Leader shareholders as to whether they should vote in favour of the proposals.
This article appeared in The Edge Financial Daily, November 3, 2011.
In a filing with Bursa Malaysia yesterday, AmInvestment Bank Bhd said Leader’s board — excluding the interested directors — had decided to accept HNG Capital’s offer subject to the execution of a definitive conditional sale and purchase agreement.
“Accordingly, the board (other than the interested directors) does not intend to seek alternative bids,” AmInvestment Bank said.
To recap, HNG Capital had on Oct 17 offered to acquire Leader Universal’s business and undertakings, including assets and liabilities, for a total consideration of RM480.1 million, which will be settled by cash and debts. HNG Capital is to satisfy 85.6% of the total purchase consideration via RM410.94 million cash with the remaining 14.4% in the form of a RM69.16 million debt due to Leader.
HNG Capital is the vehicle of the H’ng family, that has a 14.4% stake in Leader, which is primarily involved in manufacturing wire and cables for the telecommunications and power industry.
The H’ng family will not be entitled to the cash distribution of RM410.94 million to be made to shareholders, who will receive RM1.10 cash per share.
The deal values Leader’s business at 8.6 times annualised earnings for FY11 ending Dec 31 of RM55.83 million.
The offer price of RM1.10 per share is lower than Leader’s net asset value of RM1.36 per share as at June 30 but is a 30.95% premium to its closing share price of 84 sen before the offer was announced.
Leader shares had chalked up gains a week before HNG Capital’s offer was announced, surging 18.3% over a week from 71 sen on Oct 7 to 84 sen on Oct 14.
Its shares surged 17.3% or 14.5 sen to 98.5 sen on Oct 18, a day after a suspension of the trading of the shares was sought, pending the offer announcement.
This was the steepest one-day gain for Leader shares in over 10 years.
The stock closed yesterday unchanged at 95.5 sen with 1.27 million shares traded.
The group’s board had appointed AmInvestment Bank and OCBC Advisers (Malaysia) Sdn Bhd its main adviser and financial adviser for the proposals, while Kenanga Investment Bank Bhd was appointed the independent adviser to advise the non-interested directors and Leader shareholders as to whether they should vote in favour of the proposals.
This article appeared in The Edge Financial Daily, November 3, 2011.
