Published November 28, 2008

Hong Leong Asia makes bid for Tasek, valuing it at $290m

Offer triggered by move to buy 13.5% stake for $39.5m

By JAMIE LEE
Email this article
Print article
Feedback

HONG Leong Asia (HLA) has made another attempt to acquire Tasek Corporation Berhad in an offer that values the Malaysian building material company at about $290 million.

HLA said yesterday that it has agreed to buy a 13.5 per cent stake in Tasek. This raised the 32.23 per cent holding held by HLA and persons acting in concert to 45.73 per cent, triggering a conditional takeover offer for the remaining 54.3 per cent stake that it does not already own at RM3.80 per share.

The offer is being made through HLA's wholly owned unit Hartwell Pte Ltd.

HLA agreed to buy the 13.5 per cent stake from Calamus Pte Ltd for about $39.5 million - which represents 24.9 million shares at RM3.80 each.

Calamus is a wholly owned unit of GK Goh Holdings, said GK Goh in a separate announcement yesterday.

CIMB-GK Securities Pte Ltd and CIMB Investment Bank Bhd are the financial advisers for the deal.

'HLA believes that Tasek has good potential in terms of its future growth given its established position as a manufacturer and distributor of cement and related products in Malaysia,' the company said yesterday.

The bid follows HLA's announcement earlier this week that the proposed sale of its building materials business to Tasek has been mutually called off over condition fulfilment issue.

Based on the earlier sales and purchase agreement, the transaction was to have been worth $288 million.

This is based on an issue of about 180 million new ordinary shares in Tasek to HLA at the issue price of RM3.54 apiece and a RM30 million cash payment to HLA.

Had the transaction been completed, HLA would have held a near 66 per cent stake of Tasek.

Tasek, which was last traded at RM3.50, was listed in 1964 on the Stock Exchange of Malaysia, now the Bursa Securities.

HLA said trading of its shares would be lifted today at 9am.