Century Logistics' major shareholders selling 31.44% stake to S. Korean firm

PETALING JAYA: Substantial shareholders of Century Logistics Holdings Bhd, including founder and executive chairman Datuk Phua Sin Mo, are disposing of a 31.44% stake in the group to CJ Korea Express Asia Pte Ltd for RM174.79 million cash or RM1.45 per share. This represents a 39.4% premium against Century Logistics’ last traded price of RM1.04.
In a filing with the stock exchange, Century Logistics said it was informed that Sin Mo, together with his wife Datin Lee Lay Hun, daughter Pamela Phua Jo Lyn and niece-in-law Chai Mee Young had entered into a conditional sale and purchase agreement with CJ Korea Express Asia for the disposal of 120.54 million issued and fully paid ordinary shares.
Among the vendors, Sin Mo’s shareholding in the group is the highest with 18.94% and 7.22% direct and indirect stake respectively, according to latest filings with Bursa Malaysia in April.
It is noted that the disposal is conditional upon the fulfilment of the conditions precedent set out in the sale and purchase agreement and the conditions are expected to be fulfilled on or before Oct 31, 2016. The deal is expected to be completed on Oct 31, 2016.
CJ Korea Express is the largest logistics firm in South Korea, with a presence in 16 countries, according to its website. It is engaged in contract logistics, forwarding, stevedoring and international express delivery services.
Century Logistics said it will make the necessary announcements in accordance with the listing requirements and the Companies Act, 1965 upon completion of the disposal.
Trading in Century Logistics shares was suspended yesterday morning pending the announcement. The counter fell 7.5 sen or 7.2% to close at 96.5 sen on 44.03 million shares done.