Hong Leong Asia raises Tasek stake to 92.4%, secures acceptances for offer of 4%

CONCRETE supplier Hong Leong Asia now controls over 90 per cent of Tasek following the acquisition of shares in the cement maker by its wholly-owned subsidiary Ridge Star, it said in a bourse filing on Tuesday.

Ridge Star acquired 30,700 Tasek shares at Tuesday's closing price of RM5.79 per share for a total sum of RM177,753 (S$57,964).

Hong Leong Asia, via its units HL Cement and Ridge Star, sought to take Malaysia-listed Tasek private last year.

Earlier in May, Hong Leong Asia - which then owned an 88.16 per cent stake in Tasek - launched an unconditional voluntary takeover offer for the remaining shares at RM5.80 per ordinary and preference share.

Following Tuesday's acquisition, the company now holds a 92.42 per cent stake in Tasek. This comprises 111,964,997 ordinary shares - including valid acceptances of its offer - held by units HL Cement and Ridge Star.

In addition, the company has received 4,853,606 ordinary shares in offer acceptances as at 5pm on Tuesday, representing a 4.01 per cent stake. These acceptances are subject to verification.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Based on Tasek's unaudited consolidated financial statements for the first quarter ended March 31, the book value and net tangible asset value of the cement maker is RM511.4 million and RM509.9 million respectively.

The Tasek acquisition is not expected to have a material impact on Hong Leong Asia's net tangible assets per share or earnings per share for the current financial year, it said in an earlier filing.

Hong Leong Asia is the trade and industry arm of the Hong Leong Group founded by Kwek Hong Png.

Tasek is helmed by chairman Kwek Leng Peck, who is also executive chairman of Hong Leong Asia. He is a cousin of Singapore billionaire Kwek Leng Beng.

Hong Leong Asia shares were trading flat at S$0.52 as at 10.07am on Wednesday.