Corporate results: TA Enterprise, Kelington, Astro and Euro Holdings

by TMR / graphic by ANIS SHAMSUL

TA Enterprise to privatise TA Global for 28 sen a share
TA Enterprise Bhd (TAE) has offered to buy the remaining 39.83% in TA Global Bhd (TAG) for 28 sen a share. In a filing to the local bourse yesterday, TAE made a conditional voluntary takeover offer to buy out 2.12 billion shares in TAG in cash or shares in the former. TAG shareholders can choose to take 28 sen cash for every share or exchange their shares for TAE shares on the basis of 0.4211 new TAE share issued at 66.5 sen. TAE proposes to issue up to 550.54 million new shares at an issue price of 66.5 sen each to co-founder and chairman, Datuk Tiah Thee Kian, to fund the cash option pursuant to the proposed voluntary takeover offer. The offer is extended to all the offer shares held by the parties acting in concert (PACs), who currently hold 15.34% or 816.27 million shares in TAG. As of Feb 11, TAE held a 60.17% stake in TA Global while the collective shareholdings of Tiah and PACs stood at 42.37%. The offer price of 28 sen is at a 20.85% premium to TAG’s five-day volume weighted average market price while the issue price of TAE shares at 66.5 sen also represents a 22.29% premium, according to the company filling. TAE trade at 60sen, giving it a market capitalisation of RM1.03 billion, whereas TAG were at 26.5 sen, valuing the company at RM1.38 billion. The move comes as TAE noted TAG was unable to comply with the public shareholding spread requirement which stands at 24.538% as at end 2019. TAG does not have any other alternative plan to remedy the non-compliance with the public shareholding spread requirement, the filing added.  

Kelington bags RM64m from China’s largest semiconductor foundry company
Kelington Group Bhd’s wholly-owned subsidiary, Kelington Engineering (Shanghai) Co Ltd, has received contracts worth RM64 million from the largest semiconductor foundry company in China to perform base build and gas hook up works at few locations in the country. The period of the contracts is two years commencing Jan 6, 2020, Kelington stated in its exchange filing yesterday. The counter closed four sen or 3.25% higher at RM1.27 yesterday, giving it a RM394 million market capitalisation.

Astro names Euan Smith as COO, CEO TV
Astro Malaysia Holdings Bhd (Astro) has named Euan Smith as its group COO and CEO TV, effective April 1, 2020. In a filing to Bursa Malaysia yesterday, the company said the appointment is part of Astro’s business and people transformation plan amid the ongoing changes in the media and entertainment industry. Smith was trained at University of Birmingham in Mechanical Engineering and Harvard Business School.

Euro Holdings has a new controlling shareholder.
S.P.A Furniture (M) Sdn Bhd has emerged as a controlling shareholder in furniture manufacturing Euro Holdings Bhd with a 51% stake and has tabled an unconditional takeover offer for the remaining 49% or 130.97 million shares at 20 sen per share. In a filing to Bursa Malaysia on Tuesday, S.P.A paid RM27.26 million or 20 sen a share to buy its 51% stake in Euro Holdings from a group of vendors. The new shareholder intends to maintain the listing status of Euro Holdings Bhd on Bursa Malaysia.