CEO Morning Brief

Ewein MGO Concludes With No Change in Ooi Eng Leong's Stake

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Publish date: Thu, 27 Jul 2023, 08:49 AM
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TheEdge CEO Morning Brief
NationGate Holdings Bhd MD and major shareholder Ooi Eng Leong

KUALA LUMPUR (July 26): The mandatory takeover offer (MGO) for the balance 49.41% stake in Ewein Bhd launched by NationGate Holdings Bhd managing director and major shareholder Ooi Eng Leong concluded on Wednesday (July 26), with acceptances for a mere 1,099 shares received.

With this, Ooi along with the two persons acting in concert — Datuk Seri Hong Yeam Wah and Goh Kiang Ten — saw their combined stake in Ewein remain at the 50.59% level.

The MGO was launched in June after Ooi increased his equity interest in Ewein from 3.84% to 43.82% upon buying a 39.99% stake from Hijauwasa Sdn Bhd for RM72.36 million.

However, the offer price of 60 sen per share under the MGO was 14.9% lower than Ewein’s last traded price of 70.5 sen on June 14, the day the offer document was posted.

Independent adviser UOB Kay Hian Securities (M) Sdn Bhd had advised Ewein shareholder to reject the offer as the MGO was "not fair and not reasonable".

Ewein manufactures precision sheet metal moulds, tools, dies and fabricated parts, used in electrical and electronics equipment. The group also makes precision plastic injection molding products and product finishing.

Ewein’s shares closed up five sen or 3.79% at RM1.37 on Wednesday, giving the group a market capitalisation of RM413.17 million. The stock has risen 291.43% year-to-date.

Read also:
Ewein receives unconditional takeover offer at 60 sen per share, lower than last traded share price
Independent adviser says NationGate MD’s Ewein takeover offer not fair, not reasonable
Ewein to focus on precision engineering, industrial property under new shareholder

Source: TheEdge - 27 Jul 2023

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