PETALING JAYA: Hovid Bhd management’s plan to take the company private fell through as it could not get full support from its shareholders.
As at 5pm on January 12, being the final extended closing date, the joint offerors only held a 79.55% stake in Hovid, short of the 90% valid acceptance level.
Last October, Fajar Astoria Sdn Bhd and Hovid managing director David Ho Sue San announced an offer to take Hovid private for 38 sen a share and 20 sen a warrant, cash deal.
Fajar Astoria is a special purpose vehicle set up by TAEL Two Partners Ltd, a private equity firm, to undertake the offer for Hovid with Sue San, who is the son of Hovid’s founder Ho Kai Cheong.
For the first quarter ended September 30, 2017, Hovid’s net profit slumped to RM2.13 million from RM4.05 million in the previous corresponding period, due to higher proportion of tender sales, operating expenses and an increase in foreign exchange loss of RM1 million as a result of weak US dollar.
Hovid’s share price fell 1.5 sen or 4% to close at 36 sen on Friday, with some 779,800 shares changing hands.
Source: The Sun Daily