KUALA LUMPUR, Kim Hin Industry Bhd’s chairman, Chua Seng Huat, and his family have failed in their attempt to privatise the ceramic tile maker after their takeover bid closed without meeting the required threshold.
The offer to buy out minority shareholders at 85 sen per share closed with the family holding a total of 68.34% or 95.84 million shares, including 8.1 million shares (5.78%) gained through valid acceptances. Another 0.11% is pending verification, according to UOB Kay Hian (M) Sdn Bhd on behalf of the offerors.
However, this fell short of the 90% ownership level needed to trigger a compulsory acquisition of the remaining shares. Before the offer, the family already controlled 62.25% or 87.3 million shares. The deadline for the voluntary takeover offer had already been extended by a week, from Aug 15 to Aug 22.
Independent adviser New Paradigm Securities Bhd had earlier urged minority shareholders to reject the bid, calling it “not fair and not reasonable.” It noted that the 85 sen offer significantly undervalued Kim Hin, being RM2.25 or 72.58% below its estimated value of RM3.10 per share, and also below its net asset value of RM1.88 per share.
Despite Chua’s stake increasing to 67.87% by Aug 15, Kim Hin’s public shareholding spread dropped to 24.22%, below the minimum 25% required under Bursa Malaysia’s Main Market Listing rules. The company stated it would address the shortfall if necessary after the offer’s closure. Kim Hin’s shares closed at 83 sen on Friday, down 1.5 sen or 1.78%, giving the company a market value of RM128.4 million.
