Dataprep gets takeover bid of 16 sen per share
MGO comes at a steep discount to market price
PETALING JAYA: IT services company Dataprep Holdings Bhd has received a takeover offer from the founder of the diversified Widad Business Group (WBG), Tan Sri Muhammad Ikmal Opat Abdullah, at 16 sen per share.
The offer price, however, is at a steep discount of 58.97% or 23 sen below its share price of 39 sen on the last trading day prior to the offer.
It is also at a 59.97% discount to the stock’s five-day volume-weighted average price of 40 sen.
Dataprep’s share price closed five sen lower at 33.5 sen yesterday following the announcement.
The corporate exercise marks the exit of Datuk Lim Chee Wah, one of the sons of the late Tan Sri Lim Goh Tong of the Genting group, from Dataprep.
The takeover offer was triggered after Wardah Communication Sdn Bhd acquired 270.54 million shares or 64.2% stake in the company in an off-market transaction at 16 sen a share from VXL Holdings Sdn Bhd. Lim, who has been on the board of Dataprep since 2002, owns VXL Holdings.
According to its latest annual report, VXL Holdings has a 64.2% in the company.
Dataprep offers a full spectrum of ICT services to a range of customers in various industries, among them government, education, telecom- munication and financial services and products.
For the first quarter ended June 30, 2017, Dataprep had recorded a net loss of RM65,000 on the back of RM13.21mil revenue.
According to the filing with the stock exchange, Muhammad Ikmal and his wife, Puan Sri Jamilah Mahamad Isa are the ultimate offerers of the takeover, being the directors and ultimate shareholders of Wardah Communication and its holding company, WBG.
WBG, via its subsidiaries, is involved in integrated facilities management, construction, aquaculture and education, among other areas, while Wardah Communication is involved in printing and publishing. Muhammad Ikmal owns 95% of WBG, while his wife owns the remaining 5%.
In the filing, Dataprep noted that the offerers intended to maintain the company’s listing status.
Dataprep rose to a 52-week high of 71 sen on March 23 while its 52-week low was 11 sen on Nov 3, 2016.
Earlier in August, Ideal Jacobs Malaysia Corp Bhd had proposed to acquire WBG for RM520mil to enter the construction and integrated facilities management business.
In the announcement, Ideal Jacobs also outlined plans to dispose of its manufacturing, fabrication and trading businesses to a Hong Kong incorporated firm for RM28mil.