AIM receives take-over offer from Chai Woon Chet

Chai notifies AIM board of directors of his intentions to buy all 242m AIM shares in issue which would cost about RM31.5m cash


ADVANCE Information Marketing Bhd (AIM) has received notice of conditional voluntary takeover offer tabled by Datuk Chai Woon Chet (picture) at 13 sen per share.

In a notice letter filed to Bursa Malaysia yesterday, Chai notified AIM board of directors of his intentions to buy all 241.97 million AIM shares in issue (after excluding 24.09 million treasury shares) which would cost about RM31.46 million cash.

Chai does not hold any AIM shares at present.

It was noted on Oct 9, 2020, Chai proposed to subscribe to a private placement of up to 20% of the total number of issued shares of AIM to third party investor(s) to be identified later at an issue price to be determined later.

As at the date of his notice, the company has not issued any AIM shares pursuant to the proposed private placement.

The offer price is equivalent to the last traded price of AIM shares on Sept 30, 2020, and was arrived at after taking into account net assets, earnings and liquidity, the filing noted.

“The price-to-earnings ratio based on the latest audited earnings per share for the financial year ended Dec 31, 2019, is not meaningful as AIM and its subsidiaries (collectively, the AIM Group) recorded a loss after tax of approximately RM4.08 million.

“For the six-month financial period ended June 30, 2020, AIM Group recorded a loss after tax of RM1.98 million,” it said.

The offer is conditional upon the offeror having received, on or before the close of the offer, valid acceptances in respect of the offer shares, which would result in the offeror holding more than 50% of the voting shares in AIM.

“The offeror intends to maintain the listing status of AIM on the ACE Market of Bursa Securities,” AIM filing stated.

In addition, Chai confirmed he has sufficient financial resources to satisfy full acceptance of the offer.

“Mercury Securities, being the principal advisor to the offer in respect of the offer, is satisfied and confirms that the offeror has sufficient financial resources to satisfy full acceptance of the offer and the offer will not fail due to insufficient financial capability of the offeror and that every accepting holder will be paid in full cash,” AIM said.

According to the notice letter, Chai, 42, has vast experience in various industries including timber business, property development, construction and automotive sector.

Chai currently is the MD and a substantial shareholder of Anzo Holdings Bhd, a non-ED of M3 Technologies (Asia) Bhd, an ED and a major shareholder of Overseas Enterprise Bhd and a substantial shareholder of XOX Bhd.

He also sits on the board of directors of various other private companies.

Trading in AIM’s shares was halted with effect from 3.32 pm yesterday and will resume today. The counter saw its last traded 30.77% or four sen higher to 17 sen.