KUALA LUMPUR, The mandatory general offer (MGO) for Eurospan Holdings Bhd has officially closed, with the company’s new controlling shareholder, Samuel Ng Heng Hong, now holding a commanding 84.11% stake in the Malaysian furniture manufacturer.
According to a statement by AmInvestment Bank Bhd, which acted on behalf of Ng’s private investment vehicle, EC Synergy (M) Sdn Bhd, the MGO concluded yesterday with valid acceptances totaling 4.43 million shares. This represents approximately 9.97% of Eurospan’s issued share capital.
Prior to the MGO, Ng had already acquired a 74.14% block of shares from Eurospan’s chairman Tan Han Chuan and non-executive director Tan Ching Ching. With the additional shares obtained through the MGO, Ng now controls a total of 37.36 million shares. The initial acquisition of the Tan siblings’ majority stake was valued at RM75.75 million, or RM2.30 per share, and triggered the mandatory offer under Malaysian takeover rules.
Independent adviser MainStreet Adviser had recommended that shareholders reject the MGO, citing the offer price. Although the RM2.30 per share price represented a 132% premium over Eurospan’s net asset value, it was still priced at discounts ranging from 4.1% to 21.4% compared with recent market trading levels. This MGO is Eurospan’s second in just over a year, following a previous takeover bid by the Tan siblings at RM1.70 per share in May 2024.
In reaction to the news, Eurospan’s shares jumped 21.25% yesterday to close at RM2.91, giving the group a market capitalisation of RM129.3 million. The stock has seen substantial gains over the past year, rising more than 71%, while year-to-date, the share price has increased by over 27%.
The latest developments cement Samuel Ng’s control over Eurospan, giving him the ability to influence strategic decisions and future growth plans for the company, while also highlighting the active movements in Malaysia’s small-cap furniture manufacturing sector.
