KSTB shareholders launch takeover bid

PETALING JAYA: Kejuruteraan Samudra Timur Bhd (KSTB), a Practice Note 16 and 17 (PN 16 and PN 17) company, has received a take over offer from its major shareholders for 48 sen a share, just a week before it is due to submit its regularisation plan.
The joint offerors are Trance Rex Sdn Bhd, Datuk Chee Peck Kiat@Chee Peck Jan, Darmendran a/l Kunaretnam and Chee Cheng Chun, with a collective 23.73% stake as at yesterday.
The offer price of 48 sen however does not represent any premium against its five-day volume weighted average price of 48 sen. The joint offerors have also proposed a take over offer of 18 sen for warrants they do not own.
Its share price went up 2 sen to close at 48 sen yesterday.
The three said they intend to maintain the listing status of KSTB.
KSTB had earlier this year said, it is on the look out for a new business or assets in the oil and gas industry after the disposal of its core business tubular handling services last year.
The disposal of the tubular handling service business had resulted in the company becoming a PN 17 company. KSTB is to submit a restructuring plan to Bursa Malaysia Securities by April 2, 2015.
Darmendran and Cheng Chun have abstained and will continue to abstain from deliberating and voting at all relevant board meetings of the board in relation to the offer.
In a filing with the stock exchange, KSTB said the board will appoint an independent adviser in relation to the offer, in accordance with the Malaysian Code on Take-Overs and Mergers, 2010.
"The appointment of the independent adviser will be announced later," it said, adding that shareholders are advised not to take any action until receipt of the independent advice circular to be issued by the independent adviser.