Developer and lifestyle group Wing Tai Holdings is mounting a RM290.7 million (S$94 million) offer to take its Malaysia-listed counterpart Wing Tai Malaysia (WTM) private.
The Singapore-listed firm and joint offeror Wing Tai Investment & Development announced yesterday that they have served an unconditional voluntary takeover offer with a cash offer price of RM1.80 per share.
This price represents a 52.5 per cent premium over WTM's last traded price of RM1.18 on Monday - the last full trading day prior to the serving of notice.
Wing Tai Holdings said the offer is not subject to any minimum level of acceptances as the joint offerors already hold more than 50 per cent of the voting shares in WTM - at about 66.13 per cent.
"The offer would allow the group to further integrate their financial and operational resources, which should result in cost savings and achieve better operational efficiencies," the firm said in a stock exchange filing yesterday.
It added that the intention is to take WTM private by offering minority shareholders the opportunity to exit and realise their investments for cash.
Cash offer price's premium over Wing Tai Malaysia's last traded price of RM1.18 on Monday.
WTM has been listed in Malaysia since 1979, and is involved in property development and investment, retail operations, garment manufacturing and investment holding through its subsidiaries.
Its property developments are mainly in Kuala Lumpur - such as Le Nouvel KLCC - and Penang, while its fashion business comprises 12 international brands, including Topshop, Topman and Dorothy Perkins, according to a report by The Edge. WTM also owns a 45 per cent stake in a joint venture with Japan's Fast Retailing, which operates Uniqlo outlets in Malaysia.
Should the offer result in the successful delisting and full ownership of the takeover target, Wing Tai Holdings said the joint offerors shall have "greater flexibility to facilitate ease of review and execution of any restructuring plan for WTM and its subsidiaries, where necessary''. The acquisition of the offer shares will be funded by internal cash resources, it noted.
Wing Tai Holdings and WTM suspended share trading yesterday before the announcement. Wing Tai Holdings later asked for trading to resume. Maybank Investment Bank has been appointed as the financial adviser to the joint offerors.