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Maybank satisfies pre-condition for Kim Eng acquisition

05 May 2011

4 min read

Maybank satisfies pre-condition for Kim Eng acquisition
 
  • Maybank’s purchase of 44.6% stake in Kim Eng at S$3.10 per share becomes unconditional
  • Together with the 5.6% stake acquired in January 2011, upon Completion Maybank will own 50.2% of Kim Eng
  • Maybank to make an unconditional general offer for remaining shares in Kim Eng, with the intention to privatise Kim Eng
  • Following Completion, Maybank to announce intention to make a tender offer for Kim Eng Securities (Thailand) (KEST) at a price of Baht 16.00 per share

 

Kuala Lumpur - Maybank, through its wholly-owned subsidiary, Mayban IB Holdings Sdn. Bhd. (formerly known as Aseam Credit Sdn. Bhd.) (“Mayban IB Holdings”), today announced its firm intention to make a mandatory unconditional cash offer to acquire all the ordinary shares of Kim Eng Holdings Limited (“Kim Eng”), other than those already owned by Mayban IB Holdings, its related corporations and their respective nominees (the “Offer”), at a price of S$3.10 per share. The pre-condition to the making of the Offer (the “Pre-Condition”) was the satisfaction of certain key conditions (the “Key Conditions”) in accordance with the terms and conditions of the sale and purchase agreements with each of Mr. Ronald Anthony Ooi Thean Yat and Yuanta Securities Asia Financial Services Limited, for the acquisition of approximately 15.4% and 29.2% stakes respectively in Kim Eng (the “Acquisition”). The Acquisition was conditional upon the satisfaction of the Key Conditions, including, amongst others, obtaining approvals from Bank Negara Malaysia and the Monetary Authority of Singapore. Maybank expects completion of the Acquisition to take place next week (“Completion”).

 

In addition to the Acquisition, Maybank also, through Mayban IB Holdings, acquired a further 5.6% stake in Kim Eng from the market on January 7, 2011 and January 10, 2011. In view of this, Maybank will be the majority shareholder of Kim Eng with approximately 50.2% of Kim Eng upon Completion.

 

Pursuant to the satisfaction of the Pre-Condition, Maybank, through Mayban IB Holdings, has announced its firm intention to make the Offer. Maybank intends to privatise Kim Eng.

 

In addition, as at May 5, 2011, Kim Eng and its subsidiaries hold approximately 55.75 per cent. of the paid-up shares in Kim Eng Securities (Thailand) Public Company Limited (“KEST”), a company listed on the Stock Exchange of Thailand. In accordance with the Notification of the Securities and Exchange Commission No. KorChor. 53/2545, relating to the acquisition of a substantial interest in a company listed in Thailand, Mayban IB Holdings will be required to make an offer for all the issued shares in KEST (the “Thai Tender Offer”). Mayban IB Holdings will, following Completion, announce its intention to make the Thai Tender Offer at an offer price of Baht 16.00 for each share in KEST.

 

Maybank Chairman Tan Sri Dato’ Megat Zaharuddin Megat Mohd Nor said today, “We have been working hard to ensure that this transaction progresses quickly, and I am glad that we are coming close to completing it. This marks an important milestone to the Maybank Group in our aspirations to becoming a Regional Financial Services Leader and strengthening our footprint across ASEAN. In anticipation of completion next week, I would like to take this opportunity to welcome the management and staff of Kim Eng into the Maybank Group”.

 

Maybank President and CEO Dato’ Sri Abdul Wahid Omar said this milestone is timely.

 

“We have been looking forward to completing the transaction early, and are pleased that we are now in a position to do so. The acquisition will enable the Maybank Group to meet its objective of becoming a leading South-East Asian wholesale bank. The acquisition of additional shares in KEST, via the Thai Tender Offer, will help Maybank further consolidate its shareholding in this leading stockbroking firm in Thailand,” he added.

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