GBH receives mandatory takeover offer at RM1.40

The offer is made after Paragon Adventure became the majority shareholder in GBH


CERAMIC products company Goh Ban Huat Bhd (GBH) has received a mandatory takeover offer from its majority shareholder Paragon Adventure Sdn Bhd for the shares it does not own for RM1.40 a share.

GBH told Bursa Malaysia yesterday that the takeover offer included GBH warrants not held by Paragon Adventure at 40 sen per share, having considered its exercise price of RM1 per warrant. The offer is three sen short than GBH’s last traded share price of RM1.43.

The offer was made after Paragon Adventure became the majority shareholder in GBH, with the 51% stake, or 95.18 million shares, it bought from tycoon Tan Sri Robert Tan Hua Choon, in addition to the 51% of total outstanding GBH warrants.

Paragon Adventure is owned by Datuk Seri Edwin Tan Pei Seng and Datuk Seri Godwin Tan Pei Poh with 65% and 35% shares respectively, said the company intends to maintain GBH’s listing status.

The company said the takeover price of RM1.40 was made after taking into consideration, among others, GBH’s historical market prices and warrants.

The price was also inclusive of any GBH dividend payout following the takeover announcement.

“We also wish to highlight that the offerors have not purchased any GBH shares or warrants within the last six months prior to the service of this notice,” Paragon Adventure said in a statement.

The owners of Paragon Adventure were involved in several development projects in Johor. This included semi-detached factories at “Bizhub Skudai 8”, as well as Paragon Residences, Paragon Suites, and Paragon Private and International School which began operations earlier in January this year.

GBH had proposed in August to acquire a RM39.5 million vacant land measuring about 9,925 sq m in Mont Kiara, Kuala Lumpur, from Puncak Melati Sdn Bhd for investment purposes, to be financed through internal funds.

GBH returned to black in its first quarter ended June 30, 2017, with a net earnings of RM445,000 from losses of RM715,000 in the corresponding quarter the previous year, mainly attributed to its property investment business.

However, turnover fell 64% to RM4.8 million versus RM13.3 million a year ago, after the group ended its clay pipes manufacturing business in its financial year ended March 31, 2017.

GBH is said to take its sanitary ware business beyond the domestic market and into countries with a “competitive edge” such as Vietnam.

It also noted that its cash pile of RM152.7 million will be used for growth in its existing trading business and for future diversification purposes.

GBH shares were last traded at seven sen, or 5.2% higher, at RM1.43 yesterday, before the counter was voluntarily suspended from trading at 9.15am.