By PRIYA VASU / Pic by MUHD AMIN NAHARUL
Scientex Bhd has proposed to acquire in cash all the remaining shares and warrants of Daibochi Berhad (Daibochi) that it does not already own, at an offer price of RM2.70 per share and RM0.32 per warrant, amounting to total value of RM345.3 million.
In a filing to Bursa Malaysia today the company said the proposed exercise entails buying 124.8 mil Daibochi shares, representing 38.12% of the total issued shares of Daibochi excluding treasury shares, and 26.1 mil Daibochi Warrants, representing 95.75% of the outstanding Daibochi warrants.
The offer price of RM2.70 per share represents a premium of 17.39% over the 3-month volume weighted average market price (VWAP) up to the last traded price on 10 September 2021.
In addition, the Offer Price represents a premium of 221.43% over the latest unaudited consolidated net asset per Daibochi share of RM0.84 as at 30 April 2021.
Meanwhile, the Offer Price for the warrants represents a premium of 100.00% over the 3-month VWAP of Daibochi up to 10 September 2021.
In a separate statement Scientex CEO Lim Peng Jin said the challenges presented by the COVID-19 pandemic highlight the growing needs of companies to be agile to react fast to external impacts.
“This is especially important for Daibochi, which serves the supply chains of essential Food and Beverage (F&B) and Fast Moving Consumer Goods (FMCG) segments.”
“To ensure uninterrupted supply to customers, it is crucial to future-proof Daibochi’s capabilities through implementation of risk mitigation and business continuity plans that are integrated with Scientex’s resources and internal processes,” said Lim.
He added the proposed privatisation of Daibochi would provide Scientex with greater flexibility and autonomy to rationalise its business activities and to streamline the operations of both Daibochi and the enlarged Scientex group of companies, to achieve greater operational efficiencies to grow the flexible packaging business.
Additionally, the proposed privatisation would allow Scientex to streamline Daibochi’s production, supply chain, business development and administrative functions as an overall means to optimise the enlarged Scientex Group’s operations as a leading packaging player in the region, aligned to its sustainability roadmap.
The proposed takeover is expected to be completed by the fourth quarter of 2021.