PETALING JAYA: TA Enterprise is planning to privatise its property arm TA Global Bhd for 28 sen per share.
TA Enterprise told Bursa Malaysia that the voluntary general offer (VGO) to acquire the remaining 39.83% stake in TA Global will be satisfied via a cash consideration of 28 sen for every offer share; or a share exchange based on an exchange ratio of 0.4211 new TA Enterprise shares to be issued at an issue price of 66.5 sen each for every offer share surrendered.
TA Enterprise also proposes to issue up to 550.54 million new shares at an issue price of 66.5 sen each to be subscribed by its co-founder and chairman Datuk Tiah Thee Kian to fund the cash option pursuant to the proposed VGO.
The 28 sen offer price represents a 21.7% premium against its last trading price of 23 sen. It is also a 20.85% premium to its five-day volume weighted average price of 23.17 sen.
Trading in TA Enterprise and TA Global shares was suspended yesterday pending the material announcement.
As at Feb 11, TA Enterprise held a 60.17% stake in TA Global. The collective shareholdings of Tiah and persons acting in concert stood at 42.37%.
In explaining the rationale behind the privatisation, TA Enterprise said TA Global has sought several extensions of time from Bursa Securities to comply with the public shareholding spread requirement.
“In view that TAG does not have any other alternative plan to remedy the non-compliance with the public shareholding spread requirement, the successful completion of the Proposed VGO and subsequent delisting of TA Global will resolve its non-compliance with the public shareholding spread requirement.”
The public shareholding spread of TA Global as at Dec 31, 2019 was 24.538%.
In addition, it said TA Global share price performance has been declining since its peak of 53 sen on Jan 18, 2010.
“As such, the investors at large appear to be unable to accord TA Global with a good valuation and its share price is not reflective of the underlying value of the group.”
TA Enterprise also noted that TA Global’s listing status brings minimal benefit as it has not undertaken any fund raising activity since its listing in 2009.
