AbleGroup MD boosts stake to 43.97%, launches MGO at 13 sen a share

PETALING JAYA: AbleGroup Bhd's major shareholder and managing director Datuk Lim Kim Huat has upped his stake in the group to 43.97%, triggering a mandatory takeover offer for the remaining shares at 13 sen apiece.

The offer price represents a 7% discount to the company's last transacted price before trading in its shares was halted yesterday pending the announcement.

Lim will increase his stake in the group through Parallel Pinnacle Sdn Bhd, by taking over substantial shareholder Loi Heng Sewn’s 10.72% interest in AbleGroup.

In a filing with Bursa Malaysia yesterday, AbleGroup’s board of directors said it has deliberated on the offer and has no intention to seek an alternative person to make a takeover bid for the offer shares.

The board said it is in the midst of sourcing for an independent adviser to advise the non-interested directors and the holders of the offer shares in relation to the offer.

Lim and spouse Datin Chan Shiou Bin are the controlling shareholders of Parallel Pinnacle through their interest in Golden Century Overseas Ltd. They plan to maintain the listing status of AbleGroup.

AbleGroup made a net profit of RM248,000 for the second quarter ended June 30, 2017, against a net loss of RM235,000 for the same quarter in the previous year, on double the revenue from completion of good margin projects. Revenue for the quarter stood at RM3.5 million, compared with RM1.6 million for the same quarter in 2016.