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TA Global minority shareholders cry foul over privatisation offer

27 Feb 2020 / 14:41 H.

KUALA LUMPUR: The minority shareholders of TA Global Bhd have expressed their dissatisfaction over the conditional general offer to delist the property firm at 28 sen per share.

Over 20 investors and remisiers were present at the TA Global’s “Privatisation”: Implication to Minority Shareholders forum organised by the Minority Shareholders Watch Group (MSWG) today.

One investor opined that the 28 sen offer price is a slap in the face of minority investors as it does not reflect the value of the shares.

According to MSWG’s calculation, it represents a 74.5% or 82 sen discount on the counter’s revised net asset value of RM1.10 per share

Apart from the cash offer, TA Global shareholders can opt for the share swap option 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.

“If they take share swap, indirectly get to enjoy both TA Global’s growth through TA Enterprise given that TA Enterprise will have both stockbroking and property businesses,“ MSWG CEO Devanesan Evanson said at the forum.

On February 12, TA Enterprise co-founder and chairman Datuk Tiah Thee Kian proposed to privatise TA Global by acquiring the remaining 39.83% stake he does not own in TA Global.

MSWG also cautioned that the proposal could trigger a mandatory general offer in TA Enterprise, if 16% of TA Global shareholders opt for cash settlement.

This is because Tiah had said that he will inject fund into TA Enterprise to finance the privatisation of TA Global.

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