Bursa Malaysia (KLSE) Stock Investment Portal

KIBB “It is likely that the block of Iris shares would be sold off market to either institutional investors or existing shareholders,” a person with knowledge of the matter says.

The printing materials outfit plans to sell the 6.2% stake in Iris at a price to be determined later and in stages to maximise proceeds.

“For illustration purposes, based on the assumption that the Iris share are disposed of at five-day volume weighted average market price (VWAMP) of Iris shares as traded on Bursa Securities up to and including the latest practiceable date of approximately 49 sen per Iris share, the proposed disposal would result in a one-time gain on disposal of approximately RM39.38mil,” VCB said in an announcement.

The price of Iris shares will be set on a “willing-buyer willing-seller” basis, subject to a discount, if appropriate, of not more than 10% to the five-day VWAMP of Iris.

On the other hand, Iris’ unit and several shareholders have proposed to undertake a conditional take-over cash offer on VCB for 50 sen a share last September.

The group of offerors consists of Iris’ wholly-owned subsidiary Iris Healthcare Sdn Bhd, Versatile Credit & Leasing Sdn Bhd, Iris’ group managing director and CEO Datuk Tan Say Jim and Iris’ executive director Datuk Lee Kwee Hiang.

Tan, a major shareholder of Iris, is also a major shareholder of VCB while Lee, a director of Iris Healthcare, owns 0.93% direct interest in VCB.

Iris’s deputy managing director Datuk Hamdan

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Stock: [IRIS]: IRIS CORPORATION BHD

2014-05-05 12:21 | Report Abuse

LITTLE-KNOWN packaging and printing materials manufacturer Versatile Creative Bhd’s (VCB) share price exceeded its takeover offer of 50 sen a share during trade yesterday following its proposal to hive off 126.42 million Iris Corp Bhd shares, which are worth some RM56.89mil based on the latter’s market price.

The stock was last done at 49.5 sen.

Interestingly, the block of Iris shares VCB owns exceeds its own market cap of RM54.77mil.

An analyst tells StarBizWeek that the sale of 6.2% in Iris shares could put a cap on the technology firm’s share price performance although it could bode well for VCB’s share price.

VCB has to dispose of its stake in Iris to comply with the Companies Act, which states that a corporation cannot be the member of a company, which is its holding company.

A source says: “Shareholders will have to decide on VCB’s delisting at the EGM scheduled for this month.”

The printing materials outfit has to divest its stake in Iris within 12 months or more, either through the open market or through via direct trades for the compliance.
“It is likely that the block of Iris shares would be sold off market to either institutional investors or existing shareholders,” a person with knowledge of the matter says.

The printing materials outfit plans to sell the 6.2% stake in Iris at a price to be determined later and in stages to maximise proceeds.

“For illustration purposes, based on the assumption that the Iris share are disposed of at five-day volume weighted average market price (VWAMP) of Iris shares as traded on Bursa Securities up to and including the latest practiceable date of approximately 49 sen per Iris share, the proposed disposal would result in a one-time gain on disposal of approximately RM39.38mil,” VCB said in an announcement.

The price of Iris shares will be set on a “willing-buyer willing-seller” basis, subject to a discount, if appropriate, of not more than 10% to the five-day VWAMP of Iris.

On the other hand, Iris’ unit and several shareholders have proposed to undertake a conditional take-over cash offer on VCB for 50 sen a share last September.

The group of offerors consists of Iris’ wholly-owned subsidiary Iris Healthcare Sdn Bhd, Versatile Credit & Leasing Sdn Bhd, Iris’ group managing director and CEO Datuk Tan Say Jim and Iris’ executive director Datuk Lee Kwee Hiang.

Tan, a major shareholder of Iris, is also a major shareholder of VCB while Lee, a director of Iris Healthcare, owns 0.93% direct interest in VCB.

Iris’s deputy managing director Datuk Hamdan Mohd Hassan owns 1.25% in VCB while VCB directors, namely, Datuk Eow Kwan Hoong, Syed Abdullah Syed Abd Kadir and Chan Feoi Chun, are also sitting on Iris’ board.

As at Sept 19, 2013, the joint offerors owned 24.89% in VCB and they have since managed to collect up to 89.49% as at April 18.

Iris says the acquisition of a packaging company like VCB is deemed strategic for its proposed food distribution business.

The source also says that the offerors may extend its the deadline for the offer until it gains 90% in VCB.

Notably, the offerors had extended the deadline of the offer several times and have requested the board of VCB to undertake a proposed voluntary withdrawal of its listing from the main board.

VCB expects the delisting exercise to be completed by the third quarter barring any unforeseen circumstances.

Independent adviser Kenanga Investment Bank Bhd (KIBB) has earlier on advised shareholders to accept the offer as it was fair and reasonable.