Hovid’s MD launches offer to take company private

PETALING JAYA: Fajar Astoria Sdn Bhd and Hovid Bhd managing director David Ho Sue San are looking to take Hovid private with a 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 Ho.

The offer involves the acquisition of 66.28% of Hovid’s total shares issued and 56.43% of total outstanding warrants as at Oct 5, 2017. Each warrant carries the right to subscribe for one new share during the five-year exercise period which expires on June 5, 2018 at an exercise price of 18 a share, payable in cash.

Ho currently holds 33.72% of the shares and 43.57% of the warrants.

The share offer price represents an 18.75% premium to the last transacted price of the shares on Oct 6, 2017 and 20.55% premium to the five-day volume weighted average market price (VWAP) of the shares up to Oct 6, 2017.

The warrant offer price represents a 42.86% premium to the last transacted price of the warrants as at Oct 6, 2017 and 45.02% premium to the five-day VWAP of the warrants up to Oct 6, 2017.

The offer is conditional upon the joint offerors having received acceptances by the holders of the offer shares resulting in the joint offerors holding in aggregate not less than 90% of the offer shares.

Trading in Hovid shares was suspended yesterday and resumes today. The stock closed at 32 sen last Friday with 1.04 million shares traded. It has a market capitalisation of RM262.68 million.