Wednesday, May 12, 2010
G Team Serves Takeover Offer Of Maika Shares At 80 Sen Each
11:18 PM | Posted by
Admin
KUALA LUMPUR, May 12 (Bernama) -- G Team Resources & Holdings Sdn Bhd this morning served a takeover notice to the Maika Holdings Bhd Board of Directors, to acquire all its 125 million voting shares, at 80 sen per share in cash.
The offer is based on the shareholders' original investment of RM100 million and 25 million bonus shares received in 1996, in the ailing investment arm of the MIC, it said in a statement Wednesday.
G Team Resources is a special purpose vehicle formed by port tycoon Tan Sri G. Gnanalingam and another individual Datuk S. Kunasingam, to return long-suffering Maika shareholders their original cost of investment.
The offer document is expected to be despatched to Maika shareholders within 21 days. The offer would remain open for at least 21 days from the date of the offer document.
CIMB Investment Bank has been engaged as the adviser and financier to G Team for this exercise.
Gnanalingam had recently moved to help resolve the woes of Indian shareholders in Maika, considered the biggest problem besetting the community.
At a press conference here Wednesday, Gnanalingam said he was confident of receiving more than 50 per cent of the voting shares, failing which, the offer would lapse.
He said a general offer of Oriental Capital Assurance Bhd (OCA), a 74.16 per cent subsidiary of Maika, would also be triggered once the offer becomes unconditional.
"We do not intend to continue with the operations of Maika and will deal with the assets and liabilities of the firm in a transparent manner," he added.
Maika currently has two main assets, namely its stake in OCA and a piece of land in Sepang.
He added that the land in Sepang was encumbered and once its title and valuation was verified, a committee would be set up to determine the best way to realise its value.
At the same event, CIMB Group Chief Executive, Datuk Seri Nazir Razak said G Team would explore opportunities to dispose of the stake in OCA and was open to receiving interest from all qualified parties.
This is in line with G Team's intention to cease Maika's operations and to comply with Bank Negara Malaysia's condition to dispose of its stake in OCA within 12 months from the completion of the subsequent general offer on the insurance firm.
"G Team does not intend to gain any financial benefits from the exercise and should the disposal of Maika's assets and settlement of liabilities result in a surplus, it would be donated to an established charity for the benefit of the Indian community.
"But the case of having a surplus is remote. The probability is there for G team to be short-changed, instead of the shareholders," he explained.
In the case of a shortfall in the asset and liabilities realisation, the loss would be borne by G Team, he said.
Nazir also said that they were looking at a mechanism to assist shareholders in dealing with the process of selling their shares to G Team.
"The obvious way is to post it. But, we will also look at having collection centres at our branches, to facilitate with the form submission by shareholders," he said.
-- BERNAMA
The offer is based on the shareholders' original investment of RM100 million and 25 million bonus shares received in 1996, in the ailing investment arm of the MIC, it said in a statement Wednesday.
G Team Resources is a special purpose vehicle formed by port tycoon Tan Sri G. Gnanalingam and another individual Datuk S. Kunasingam, to return long-suffering Maika shareholders their original cost of investment.
The offer document is expected to be despatched to Maika shareholders within 21 days. The offer would remain open for at least 21 days from the date of the offer document.
CIMB Investment Bank has been engaged as the adviser and financier to G Team for this exercise.
Gnanalingam had recently moved to help resolve the woes of Indian shareholders in Maika, considered the biggest problem besetting the community.
At a press conference here Wednesday, Gnanalingam said he was confident of receiving more than 50 per cent of the voting shares, failing which, the offer would lapse.
He said a general offer of Oriental Capital Assurance Bhd (OCA), a 74.16 per cent subsidiary of Maika, would also be triggered once the offer becomes unconditional.
"We do not intend to continue with the operations of Maika and will deal with the assets and liabilities of the firm in a transparent manner," he added.
Maika currently has two main assets, namely its stake in OCA and a piece of land in Sepang.
He added that the land in Sepang was encumbered and once its title and valuation was verified, a committee would be set up to determine the best way to realise its value.
At the same event, CIMB Group Chief Executive, Datuk Seri Nazir Razak said G Team would explore opportunities to dispose of the stake in OCA and was open to receiving interest from all qualified parties.
This is in line with G Team's intention to cease Maika's operations and to comply with Bank Negara Malaysia's condition to dispose of its stake in OCA within 12 months from the completion of the subsequent general offer on the insurance firm.
"G Team does not intend to gain any financial benefits from the exercise and should the disposal of Maika's assets and settlement of liabilities result in a surplus, it would be donated to an established charity for the benefit of the Indian community.
"But the case of having a surplus is remote. The probability is there for G team to be short-changed, instead of the shareholders," he explained.
In the case of a shortfall in the asset and liabilities realisation, the loss would be borne by G Team, he said.
Nazir also said that they were looking at a mechanism to assist shareholders in dealing with the process of selling their shares to G Team.
"The obvious way is to post it. But, we will also look at having collection centres at our branches, to facilitate with the form submission by shareholders," he said.
-- BERNAMA
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