Hovid receives voluntary take over offer from founder


Hovid Bhd has received a voluntary take over offer from Fajar Astoria Sdn Bhd (FASB) and Ho Sue San who tabled an offer of 38 sen per share and 20 sen per warrant.

In a filing to Bursa Malaysia yesterday, Hovid, a pharmaceutical maker based in Perak, noted FASB and Ho will have to buy the remaining 544 million shares, representing 66.28% of shares issued as of Oct 5, 2017.

The offerers would also acquire all 56.43%, or 322.2 million warrants, now held by minority shareholders.

Ho, who is the MD and founder of Hovid, currently holds 33.72% of the shares and 43.57% of the warrants as of yesterday. The offerers do not intend to maintain the listing status of Hovid. The offer price is at a six sen premium to its last stock price of 32 sen last Friday. Hovid has a market capitalisation of RM262.68 million at the latter price.

Etiqa Insurance Bhd is the second-largest shareholder in Hovid with a 2.17% stake, Bloomberg data shows, while the other shares are held by minority shareholders.

In January, the Health Ministry had repealed the manufacturing licences of both of Hovid’s facilities in Perak.

The revocation order came following an audit by the National Pharmaceutical Regulatory Agency (NPRA) on Hovid’s facilities and found the latter’s Good Manufacturing Practice (GMP) compliance was not acceptable and its pharmaceutical quality system did not comply with the latest GMP requirements.

The re-issuance of the licences would be subjected to the NPRA being satisfied with the outcome of its audit.

In March, Hovid had received the manufacturing licence for its Chemor plant, valid from March 6, 2017. In May, it received a manufacturing licence for its Ipoh plant.

The licences for both its plant has to be renewed three months prior to the expiry date, ie on Dec 31, 2017.