KUALA LUMPUR: Cocoaland Holdings Bhd has rejected the takeover offer by Navis Asia VII Management Company Ltd.
The confectionery maker said on Monday its board had deliberated on the proposed acqusition put forward last Friday and “unanimously rejected the offer”.
“The offer price for the proposed acquisition was RM377.52mil (RM2.20 per share),” it said.
Last Friday, Cocoaland received a non-binding indicative offer letter to acquire all of Cocoaland’s assets and liabilities.
Trading in Cocoaland securities was suspended on Monday.
The last traded price was RM2.06 prior to the suspension that started on Friday at 2:30pm.
Last month Cocoaland, whose major shareholders include Fraser & Neave Holdings (with about 27% stake) announced that it was in talks with Swedish private equity group EQT for investment possibilities which might result in the latter taking over Cocoaland.
The issue here is the f&n will it vote for the deal which have the largest stake in cocoland where it investment have gone up to 98% from RM1.3+ vs the offer price of RM2.70
PETALING JAYA: Snacks and candy company Cocoaland Holdings Bhd has received an indicative non-binding proposal from First Pacific Company Ltd to acquire the business of Cocoaland including all of its assets and liabilities for RM463.32mil or RM2.70 per share.
This is the second takeover offer Cocoaland is receiving in less than two weeks.
Last week, Cocoaland’s board rejected a takeover offer from private equity firm Navis Asia VII Management Co Ltd for RM377.52mil or RM2.20 per share.
The confectionery maker said then that its board had deliberated on the proposed acquisition made on May 22, and unanimously rejected the offer.
Cocoaland was last traded at RM2.04 on Monday. The stock is up 51 sen or 33.33% on a year to date basis. It will resume trading at 9am today.
For this latest offer, Cocoaland directors Liew Fook Meng, Lau Kee Von, Liew Yoon Kee and Lau Pak Lam are deemed interested parties in the proposal.
First Pacific intends to undertake the proposal through a special purpose vehicle.
Fook Meng, who is an executive director and substantial shareholder of Cocoaland, along with certain shareholders of Leverage Success Sdn Bhd, (a substantial shareholder of Cocoaland, and referred to as the Liew Group) will acquire a stake in the proposed acquiror to be agreed upon by First Pacific and the Liew Group.
First Pacific is a Hong-Kong based investment management and holding company, having its principal business interests in telecommunications, consumer food products, infrastructure and natural resources. It is listed on the Hong Kong Stock Exchange.
Cocoaland told Bursa the proposal is conditional upon a few key things, chiefly the completion of a due diligence exercise to the satisfaction of First Pacific, on the commercial, financial, legal, tax and other affairs of Cocoaland and its subsidiaries for a period of four weeks.
Secondly, the negotiation and execution of a sale and purchase agreement for the proposal on terms and conditions are to be satisfactory to all parties.
The last condition is that Cocoaland has not paid, made or declared any dividend or distribution from the date of the proposal until the completion of the proposal.
Cocoaland told Bursa that it had agreed for a six week period of exclusivity from the date of the proposal or for an extended period agreed upon by all parties. During this period, Cocoaland will deal exclusively with First Pacific in respect of any disposal of the business and undertaking, including all the assets and liabilities, of Cocoaland or any takeover offer for Cocoaland shares.
“Cocoaland further agrees that neither it nor the management of Cocoaland will initiate or enter into any transaction, negotiation or discussion with any other party regarding such proposed disposal or takeover or respond to any approach made by any party with a view to any of the foregoing,” it said.
Mean ada masa n tak pakai duit then tunggu 3 bulan +- ni macam lo .. Angkat 270 .. Takut tak jadi ma jual lo..ada 230 gua sure tambah aeh ...kikikiiii 2 cents feel is jadi liau la..quite good Liao ..no objection Liao aeh..ada for me also win more or less nia n if ada objection price may lagi high le ... Hahahahaa
I saw Thorntons chocolate everywhere in UK market. On the other hand, I hardly ever see Cocoaland products in malaysia or anywhere (i know they concentrate on export market like China etc.).
Cocoaland has received a letter dated 19 July 2015 from First Pacific withdrawing its intention to acquire all the business and undertaking of Cocoaland due to First Pacific group’s determination, after completion of the due diligence exercise, that the strategic fit offered by Cocoaland differs from what First Pacific had envisaged. Accordingly, the Proposal is aborted.
Can't agree anymore on the article written by the edge insider. With the drop of commodity raw sugar price and increase currency of usd, it definitely means upside trend of double digit growth. The upcoming quarterly result would verify the research. Let's hold and see.
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MQ Trader 3111 views | 3 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
hockhuat
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Posted by hockhuat > 2015-06-03 10:43 | Report Abuse
sell on news la...those bought 2.60 trapped at high price...later coco reject offer....finish...haha because it is not confirm