BSL offers RM1.15 sen a share in takeover bid

by NUR HAZIQAH A MALEK / pic credit: ANNUAL REPORT

FOLLOWING the acquisitions of shares in BSL Corp Bhd for a total cash consideration of RM57.48 million by Datuk Seri Dr Pang Chow Huat and Ho Jien Shiung, the joint offerors have extended an unconditional mandatory takeover offer of all the remaining BSL shares for RM1.15 sen a share.

In a filing to Bursa Malaysia yesterday, the company stated a total of 46.66 million shares are not already held by the joint offerors.

At the cash offer price, a successful acceptance of the offer tabled will cost the offerors another RM53.65 million.

“If BSL declares, makes or pays any dividend or other distribution of any nature on or after the date of this notice but before the close of the offer and the holders are entitled to retain such distribution, the joint offerors shall reduce the offer price by an amount equivalent to the net distribution per offer share that the holders are entitled to retain.

“Holders may accept the offer for all or part of their offer shares,” the exchange filing noted.

Pang, 47, currently holds 32.44 million shares in BSL, which represents 33.57% equity stake.

Meanwhile, Ho, 36, has 17.54 million shares in BSL or 18.15% equity interest.

Both joint offerors confirm that they have sufficient financial resources to satisfy the full acceptance of the offer, and have confirmed that every accepting holder will be paid in full by way of cash.

For its latest financial report, BSL recorded a net profit of RM1.67 million against RM540,000 in the previous year for its second quarter ended Feb 28, 2021.

Its revenue was also higher at RM41.88 million versus the previous year’s RM38.25 million.

The offerors intend to maintain the listing status of BSL on Bursa Malaysia’s Main Board, the exchange filing noted.

BSL’s share price rose five sen to RM1.14 yesterday following the announcement of the offer.