Friday, 22 July 2011

Eng Teknology Privatisation Update

Here it comes the latest news regarding to Eng Teknology privatisation from The Star!!

 Eng Teknologi Holdings Bhd's major shareholders has made an offer via investment vehicle TYK Capital Sdn Bhd to take the company private at an indicative offer price of RM2.50 per share or RM307.2mil.
In an announcement to the stock exchange yesterday, TYK Capital said it was entering into an agreement to acquire the entire business and undertakings of the precision engineering manufacturer based in Penang at RM2.50 per share.
It would also acquire all the employees' share option scheme (ESOS) options at the scheme's intrinsic value, that is, the positive difference between the offer price per share and the ESOS exercise price.
The proposed acquisition would be satisfied via RM246.4mil in cash and RM60.8mil as the amount owing to Eng Teknologi by TYK Capital.
Datuk Teh Yong Khoon, Datin Low Yeow Siang and Singapore-incorporated Advance Capital Partners Pte Ltd are shareholders of TYK Capital. Advance Capital Partners' director is Tan Choon Wee.
Teh, who is also Eng Teknologi co-founder-cum-chief operating officer, together with his mother Low held 28.22 million shares or 23.21% stake in the company at the latest practicable date.
As part of the proposed acquisition, TYK Capital would subscribe to two new RM1 shares alloted to it by Eng Teknologi.
In a separate announcement, Eng Teknologi said as the offer was a related party transaction, the offer would only be deliberated by the non-interested directors of the company.
The company said the interested directors would abstain from deliberations and voting at the relevant board meetings in respect of the offer.
“An independent adviser will also be appointed to advise the non-interested directors and non-interested shareholders of Eng Teknologi,” it added.

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