QL tables MGO to Boilermech shareholders

by AFIQ AZIZ / graphic by TMR GRAPHIC

QL RESOURCES Bhd has tabled an unconditional mandatory takeover offer to the remaining shareholders in Boilermech Holdings Bhd after raising its stake in the biomass boiler maker to 48.15% following the purchase of a 4% share from Leong Yew Cheong for RM19.6 million, or 95 sen per share.

In a notice filed to Bursa Malaysia yesterday, Boilermech stated that QL holds its stake via its wholly-owned subsidiary, QL Green Resources Sdn Bhd, while Leong is Boilermech MD.

At 95 sen a share, the offer values Boilermech at RM490.2 million and matches the last traded price of Boilermech shares on Wednesday before its trading was suspended.

The offerer intends to maintain the listing of Boilermech, its exchange filing yesterday noted.

QL is in the agro-food business which focuses on producing eggs.

Its net profit for the second quarter ended Sept 30, 2020, grew 0.64% to RM70.13 million from RM69.68 million a year ago, underpinned by improved margin from its marine product manufacturing division.

Quarterly revenue inched up 0.5% to RM1.08 billion from RM1.07 billion, its filing to Bursa Malaysia showed.

In the statement, Boilermech confirmed that QL Green is able to implement the offer in full, guaranteeing that the offer would not fail due to insufficient financial capability.

It added that every shareholder who wishes to accept the offer will be paid in full by cash.