KUCHING: Fresh from taking control of Sarawak Consolidated Industries Bhd (SCIB), billionaire corporate figure Datuk Dr Mohd Abdul Karim’s next acquisition target is to buy out minority shareholders in Kumpulan Powernet Bhd (KPB).
He raised his stake in KPB to about 36.13 percent after acquiring additional 12,251,700 shares (16.09 percent) in several direct transactions for cash consideration of RM12,251,700 or RM1 per share on Oct 2.
Prior to the acquisition, Mohd Abdul Karim,also Serba Dinamik Holdings Bhd group managing director and CEO, owned 15,263,141 shares or 20.04 percent in KPB which he acquired in off market deal on June 20, 2019.
Subsequently, Mohd Abdul Karim, 54, was appointed KPB executive deputy chairman on June 28.
KPB is principally involved in the manufacture of warp-knitted fabrics and property development.
As his stake has exceeded the 33 percent that triggers a mandatory general offer (MGO), Mohd Abdul Karim has served a conditional mandatory takeover notice on KPB to acquire all the remaining ordinary shares in KPB not already owned by him (offeror) and the persons acting in concert (PACs) for RM1 each.
In a filing with Bursa Malaysia, KPB said its board of directors would hold a meeting to deliberate on the offer and make an announcement in due course.
The PACs collectively own 8,132,900 shares or 10.68 percent equity interest in KPB.
They are Grand Deal Vision Sdn Bhd (GDVSB) (7,750,000 KPB shares or 10.18 per cent), Mustakin Mat Nun and Sarah Azreen Abdul Samat (49 percent and 51 percent shareholder respectively in GDVSB), Rosland Othman (245,900 shares or 0.32 percent) and Azhan Azmi (137,000 shares or 0.18 percent).
GDVSB, being one of the PACs, has provided its written irrevocable undertaking on Oct 2 to the offeror to not accept the offer for its KPB shares.
The offeror together with the PACs hold in aggregate 46.81 percent equity interest in KPB.
RHB Investment Bank Bhd, which
acts for Mohd Abdul Karim, said the offer would remain open for acceptance for a period of not less than 21 days from the
posting date.
“The offeror has confirmed that he is able to implement the offer in full and that the offer will not fail due to his insufficient financial capability, and that every holder (of offer share) who wishes to accept the offer will be paid in full by cash.”
RHB Investment Bank has confirmed that the financial resources available to the offeror are sufficient to satisfy the full acceptance under the offer.
The offeror intends to maintain the listing status of KPB on the Main Market of Bursa Malaysia.
Mohd Abdul Karim, who has increased his stake to 50.53 percent in SCIB, is now the company chairman.
He is also executive deputy chairman of Singapore-listed CSE Global Ltd.
Mohd Abdul Karim is a substantial shareholder in another listed entity Watta Holding Bhd with a stake of 6.07 percent.
