Daiman offers RM1.65 a share for rest of Rex

PETALING JAYA: Daiman Taipan Sdn Bhd has launched a takeover bid for the remaining 66.28% stake it does not own in Rex Industry Bhd at RM1.65 per share, after its shareholding triggered the 33% mandatory general offer threshold.
Rex shares rose 12 sen or 7.74% to close at RM1.67 yesterday on some 4.78 million units done.
In a filing with Bursa Malaysia, Rex said Darmendran Kunaretnam, a substantial shareholder of Daiman and Rex, acquired a 5.74% stake in Rex from the open market at an average price of RM1.612 per share yesterday. Daiman also acquired a 1.62% stake yesterday, at RM1.65 per share.
This brought the collective shareholding of Daiman and its persons acting in concert (PACs) from 26.35% to 33.72%. Prior to the acquisitions, Darmendran and Daiman held 5.71% and 20.64% stakes respectively.
The offer price of RM1.65 per share represents the highest price paid by Daiman for Rex shares in the previous acquisitions and is also the highest price paid for Rex shares during the six months period prior to the start of offer period.
The offer price represents a 6.45% premium to the last transacted price of Rex shares on Feb 6, 2017 being the last trading day prior to the date of notice (LTD), of RM1.55 per share.
It also represents a 10% premium to the one-year volume weighted average market price of Rex shares up to and including the LTD, of RM1.50 per share.
The offer is conditional upon Daiman having received valid acceptances by the closing of the offer, which would result in Daiman and its PACs holding in aggregate, more than 50% of the issued share capital of Rex.
Daiman intends to maintain the listing status of Rex unless sufficient valid acceptances are obtained to invoke the compulsory acquisition by the closing date.