Ewein shareholders spurn NationGate MD’s takeover offer


NationGate Holdings Bhd MD Ooi Eng Leong along with two persons acting in concert hold a combined 50.59% stake in Ewein Bhd.

PETALING JAYA: NationGate Holdings Bhd managing director Ooi Eng Leong’s mandatory takeover offer (MGO) for the balance 49.41% stake in Ewein Bhd has fallen flat with acceptances for a mere 1,099 shares received at the close of the exercise today.

This means that Ooi along with the two persons acting in concert (PAC) – Hong Yeam Wah and Goh Kiang Ten – saw their combined stake in Ewein remain at the 50.59% level.

The level of acceptance was confirmed in a press release today by Amlnvestment Bank, which is representing the offeror.

On June 14, Ooi announced he planned to acquire all the remaining 149.01 million shares or 49.41% of Ewein not already owned by him and the PACs for RM89.41 million.

He made the offer after raising his stake to 43.82% from 3.84%, after acquiring a 39.99% stake from Hijauwasa Sdn Bhd for RM72.36 million.

It was obvious the unconditional mandatory takeover offer was bound to fail as the offer price of 60 sen per share was 14.9% lower than Ewein’s last traded price of 70.5 sen on June 14, the day the offer was posted.

Ewein’s shares closed 5 sen or 3.79% higher at RM1.37 today, giving it a market capitalisation of RM413.17 million. Since the start of the year, the counter has risen 291%.

Independent adviser UOB Kay Hian Securities (M) Sdn Bhd had advised shareholders to reject the deal, stating the takeover offer for Ewein was “not fair and not reasonable”.

It added the offer was not reasonable as the offeror intends to maintain Ewein’s listing status on the Main Market.

Ewein is a precision sheet metal moulds, tools, dies and fabricated parts manufacturer, used in electrical and electronics equipment. The group has also diversified into property development in recent years.

Meanwhile, NationGate is an electronic manufacturing services (EMS) provider with Ooi as its single largest shareholder with a 65% stake.

Hijauwasa, which disposed the 39.99% stake to Ooi, is reported to be controlled by Sit Chin Leng, who was holding the shares as an administrator of her late husband and Ewein founder Ewe Swee Kheng’s estate.

Ewe was the executive chairman when he passed away at age 53 in October 2021.

It was reported he was one of the prosecution witnesses in the RM6.3 billion Penang undersea tunnel graft case involving former Penang chief minister and finance minister Lim Guan Eng.

Source link

Leave A Reply
Bitcoin (BTC) RM315,699.82
Ethereum (ETH) RM16,584.42
Tether (USDT) RM4.71
BNB (BNB) RM2,852.29
XRP (XRP) RM2.25
Cardano (ADA) RM1.99
Solana (SOL) RM695.45
Dogecoin (DOGE) RM0.672329
Polkadot (DOT) RM30.05
Polygon (MATIC) RM2.87
Lido Staked Ether (STETH) RM16,584.56
Shiba Inu (SHIB) RM0.000102
Dai (DAI) RM4.71
TRON (TRX) RM0.547589
Avalanche (AVAX) RM148.98