Practice Makes Perfect
Lembaga Tabung Angkatan Tentera (LTAT) Buys AIC Shares
Chin Kok Tan
Publish date: Fri, 23 Mar 2012, 07:46 PM
Chin Kok Tan
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It now owns 5% stake in soon-to-be-listed Temasek Formation
PETALING JAYA: Lembaga Tabung Angkatan Tentera (LTAT) is the buyer of AIC Corp Bhd's 17.74 million shares which were transacted in several off-market deals yesterday at an average price of RM1.40, said sources close to the company.
It was a direct business transaction, with the seller being one of the substantial shareholders of AIC.
These shares account for 10.2% of AIC's paid-up capital of 173.87 million shares.
Goh owns 25.2% stake in AICAt RM1.40, this was 10 sen below Wednesday's closing price of RM1.50.
'Based on the 10.2% stake, LTAT will end up with a 5% stake in the new entity,Temasek Formation Bhd, which is targeted to be listed at end-May. So far, everything is moving according to schedule,' said the source.
The source added that LTAT was confident in the group's ability to grow further and wanted the first bite to participate in the listing of Temasek Formation.
In July 2011, Temasek Formation, a special-purpose company owned byDatuk Goh Tian Chuan, who is group executive chairman of Jotech Holdings Bhd and AIC, submitted the proposed merger offer simultaneously to AIC, Jotech and AutoV Corp Bhd to collectively acquire the business and undertakings of all the three companies for RM711mil to be satisfied via the issuance of new Temasek Formation shares.
Goh owns 7.6% stake in Jotech, 25.2% in AIC and 0.4% in AutoV.
The acquisition price of Jotech, AIC and AutoV are RM217.3mil, RM339.2mil and RM138.9mil respectively.
This is being paid for by shares in Temasek Foundation in exchange for shares in the three companies, at a share exchange ratio that values Jotech shares at 18 sen each, AIC shares at RM1.80 and AutoV shares at RM2.38.
Based on this scenario, the proposed swap ratios are three new Temasek Formation shares for every two existing Jotech shares, 15 new Temasek Formation shares for every one existing AIC share and 119 new Temasek Formation shares for every six AutoV shares.
During the EGMs of AIC, Jotech and AutoV earlier in the week, all three companies received support from shareholders for the proposed disposal of entire businesses and undertakings, including all the assets and liabilities of the companies to Temasek Formation.
Temasek Formation received approval from the Securities Commission for this proposed merger in January.
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