Hong Leong Capital seeks for lower public spread

PETALING JAYA: Hong Leong Capital Bhd (HLCap) is asking Bursa Malaysia to keep its public shareholding spread at 18.67% after it failed to reduce it to the minimum 25% required under listing rules before the Nov 30, 2014 deadline.
In an announcement to Bursa Malaysia yesterday, HLCap said it had applied to the stock exchange for approval for a lower public shareholding spread of 18.67%, and alternatively a further extension of six months to comply with the 25% minimum requirement.
HLCap has been struggling to meet the 25% minimum requirement for its public shareholding spread since early 2013.
This is also the fourth time since March 2013 it has asked the regulator for an extension time to comply with the listing rules.
HLCap public shareholding spread fell below the 25% mark after an attempt by its single largest shareholder, tycoon Tan Sri Quek Leng Chan failed in his attempt to take the company private.
However, Quek’s takeover bid was foiled by veteran investor and HLCap substantial shareholder Datuk Dr Yu Kuan Chon.
Yu had emerged as a substantial shareholder in HLCap after Quek, via Hong Leong Financial Group Bhd (HLFGB), launched an offer to take the former private at RM1.71 per share in January 2013.
Presently, Quek Leng Chan via HLFG holds 81.33% or 200.8 million shares in HLCap while Yu holds 4.75% equity stake or 11.787 million shares in HL Cap.
Up till now, HLCap has not identified a satisfactory plan to address the non-compliance with the 25% public shareholding spread requirement.
HLCap gained 8 sen, or 0.58%, to close at RM13.78 yesterday.