Ideal United gets 54 sen takeover bid


Ideal United Bintang International Bhd has taken another step to complete its internal reorganisation scheme after the company received a mandatory takeover offer from its major shareholder, ICT Innotech Sdn Bhd, at 54 sen per share.

In a filing to Bursa Malaysia yesterday, the property developer noted that its respective executive chairman and director Tan Sri Ooi Kee Liang and Puan Sri Phor Li Wei were the sole shareholders of ICT.

The takeover would also involve the acquisition of all remaining warrants in Ideal United Bintang for one sen each. As at Dec 31, 2016, Ideal United Bintang has a total of 110.47 million issued ordinary shares and 55.23 million warrants.

The offer price of 54 sen represents a discount of 12.9%, or eight sen, compared to Ideal United Bintang’s share price of 62 sen on its last trading day.

The warrants offer price is a steep markdown of 90.9%, or 10 sen, against its last traded market price before the announcement.

The takeover bid was triggered by ICT’s earlier acquisition of 29.72 million shares, or a 26.9% stake, in Ideal United Bintang from its two other larger shareholders, Bumimaju Gaya Sdn Bhd and Lakaran Asia Sdn Bhd, for RM16.05 million, or 54 sen a share.

Upon completion of the acquisition, ICT’s shareholdings in Ideal United Bintang increased from 27.16% to 54.06%, prompting an extension of a mandatory takeover offer.

ICT noted that it intends to maintain the listing status of Ideal United Bintang on the Main Market.

The company confirmed the offer will not fail due to insufficient financial capability, adding that every shareholder who wishes to accept the offer will be paid in cash.

The move is part of Ooi’s ongoing effort to diversify Ideal United Bintang’s business from heavy machinery and spare parts to include property development.

Since he emerged as a substantial shareholder of the company in 2013, the Penang property magnate has helped steer the company back into profitability due to its flagship high-rise project, i-Santorini in Tanjung Tokong, Penang.

For its fourth quarter ended Dec 31, 2017, Ideal United Bintang posted a 23.1% increase in net profit to RM6.4 million from RM5.2 million in the corresponding period a year ago, despite the lower turnover.

On a full-year basis, the company’s net profit nearly doubled to RM15.7 million versus RM8.3 million in the previous year, backed by the continuous steady take-up rate from i-Santorini.

Revenue also grew 60.8% to RM246.5 million from RM153.3 million.