Malaysia Hengyuen makes RM293.76 million offer for rest of Shell Refining

PETALING JAYA: Shell Refining Company (Federation of Malaya) Bhd (SRC) has received a notice of unconditional takeover offer from Malaysia Hengyuan International Ltd (MHIL) to undertake a mandatory takeover offer to acquire all the remaining ordinary shares of RM1 each in SRC not already owned by MHIL for RM1.92 cash per share or RM293.76 million.
Trading in SRC’s shares was halted from 3.05pm to 4.05pm yesterday. SRC closed 6 sen or 2.55% lower at RM2.29.
The offer is not conditional upon any minimum level of acceptances of the offer shares, as MHIL looks to maintain the listing status of SRC.
MHIL, a wholly owned subsidiary of Heng Yuan Holdings Ltd (HYHL), which in turn is a wholly owned subsidiary of Shandong Hengyuan Petrochemical Co Ltd (SHPCL), had on Feb 1, 2016 entered into a conditional sale and purchase agreement (SPA) to acquire 153 million shares of RM1 in SRC, representing 51% of the voting shares of SRC from Shell Overseas Holdings Ltd for US$66.3 million (RM276.7 million), representing an offer price of US$0.43 per SRC share (RM274.98 million or RM1.80 per SRC share).
The SPA become unconditional yesterday. The acquisition will be completed on Thursday.