Asteel gets mandatory takeover offer of 7.5 sen per share as Clifford Hii seeks control
Businessman Datuk Clifford Hii is acquiring a 52.94% stake in Asteel Group Bhd for RM20.25 million, triggering a mandatory takeover offer for the remaining shares. Hii intends to keep the company listed on the exchange.
Why it matters
This corporate acquisition marks a change in control for the steelmaker and provides a liquidity event for existing shareholders at a premium price.
BURSA SGX Home M&A Make The Edge Malaysia your preferred source on Google KUALA LUMPUR (Aug 24): Asteel Group Bhd (KL: ASTEEL ) has received a mandatory takeover offer from businessman Datuk Clifford Hii Toh Leong, who is seeking control of the steelmaker through a RM20.25 million deal to acquire a 52.94% stake.
Hii Capital Holdings Sdn Bhd, wholly owned by Hii, is acquiring 270 million Asteel shares from a group of shareholders at 7.5 sen apiece, according to an exchange filing on Monday.
Under Malaysian takeover rules, the acquisition triggers a mandatory offer for all remaining Asteel shares not already held by Hii Capital, Hii or persons acting in concert with them, also at 7.5 sen apiece.
The mandatory offer could require up to about RM18 million in additional cash if fully accepted, on top of the RM20.25 million Hii Capital has agreed to pay for the controlling stake.
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