Tekala’s RTO revised downwards to RM511.28m

PETALING JAYA: The price tag for the proposed acquisition of five firms from Syarikat Kretam (Far East) Holdings Sdn Bhd (SKHSB) by WMG Holdings Sdn Bhd, which will lead to the reverse takeover of Tekala Corp Bhd, has been revised downwards to RM511.28 million from RM513 million.
In a filing with the stock exchange, Tekala said WMG and SKHSB had mutually agreed to revise the aggregate purchase consideration following a further internal peer review by CH Williams of the valuation of the properties of the target companies, which are in Sandakan, Sabah.
The target companies are Ritai Sdn Bhd, Cosmopolitan Company Sdn Bhd, Syarikat Far East Development Sdn Bhd, Velda Development Sdn Bhd and Wah Mie Realty Sdn Bhd.
The reverse takeover also entails WMG exchanging the entire issued and paid-up share capital in Tekala on the basis of 133 new 10 sen shares in WMG at an issue price of 50 per share, for every 100 existing Tekala shares held.
Upon completion of the proposed share exchange, the shareholders of Tekala will become shareholders of WMG, and Tekala will become a wholly owned subsidiary of WMG.
SKHSB will emerge as the controlling shareholder of Tekala via WMG, with a 56.3% stake.