The takeover of troubled MIC investment vehicle Maika Holdings Bhd by G Team Resources has become unconditional after the latter secured 51% share acceptances.
According to a press release issued by CIMB Investment Bank Bhd, G Team has received aceptances of 63.5 million shares, representing 50.8% of the total paid-up capital of the company.
The company said it was still accepting shares from shareholders. G Team added that there were more than 10,000 shareholders whose addresses were untraceable while many shareholders who passed away did not inform their next-of-kin of their shareholding.
“It was our original intention to assist the very poor and we will not stop despite these obstacles. According to the laws of the takeover, we will keep the takeover offer open until 5pm on July 30 to pursue this,” a G Team spokesman said.
“We have engaged the services of several NGOs, especially the Sri Murugan Centre and EWRF plus we have sent mobile teams to visit the estates where shareholders are located to assist them to fill the forms and submit them.
“More significantly, we have approached the National Registration Department to assist us trace the new addresses, especially if they have changed their ICs lately. It will also help us verify the status of the deceased shareholders.”
Meanwhile, G Team has commenced the takeover of the responsibilities of Maika Board and the operations of the company. G Team is also awaiting official confirmation by the authorities to appoint the new directors.
As a result of the Maika takeover becoming unconditional, G Team has also extended a takeover offer for Oriental Capital Assurance Bhd (OCA) for RM1.61 cash each. OCA is considered a downstream entity according to Practice Note 2.2 of the Malaysian Code on Take-Overs and Mergers 1998.
G Team did not, at the time of announcement yesterday, hold any direct equity interest in OCA which is a 74.16%-owned company of Maika. The other majority shareholder is GRYSS Holdings Sdn Bhd with a 1.92% stake.
G Team can enforce the compulsory sale of all outstanding OCA shares should it receive acceptances of at least 90% of the nominal value of the outstanding shares. G Team said in the announcement that it would invoke its right to compulsorily acquire outstanding shares should it receive acceptances from 90% of outstanding OCA shares.
The announcement further stated that all necessary approvals for the offer have been obtained from both the Securities Commission (SC) and Bank Negara Malaysia.
G Team is a special purpose vehicle established by Westports Malaysia Sdn Bhd executive chairman Tan Sri G Gnanalingam and another individual, Datuk S Kunasingam, to take control of Maika with the objective of repaying shareholders their cost of investment in the company.
G Team said in a press release yesterday that 67.64% of Maika’s shareholders had accepted G Team’s offer, but there had been some administrative issues over the documentation of the shareholders, especially those who had lost share certificates and those representing deceased shareholders.
This article appeared in The Edge Financial Daily, July 14, 2010.
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