KUALA LUMPUR: Information and communications technology-based Nexgram Holdings Bhd has launched a conditional takeover offer for packaging materials and industrial machinery manufacturer Ire-Tex Corp Bhd in order to diversify its earnings base.
Nexgram told Bursa Malaysia that it planned to do this through an equity swap based on 40 sen per Ire-Tex share, 1 sen per warrant and 5 sen per irredeemable convertible unsecured loan stocks (Iculs).
The offer prices will be satisfied via the issuance of new Nexgram shares with current par value of 10 sen each (5 sen after the implementation of its current par value reduction exercise) at an issue price of 10 sen.
This translates to four Nexgram shares for every Ire-Tex share surrendered, one Nexgram share for every 10 Nexgram warrants surrendered, and one Nexgram share for every two Iculs surrendered
Nexgram chief executive officer and major shareholder Datuk Tey Por Yee is the only person acting in concert (PAC) with Nexgram, in which he holds a 14.89% direct interest and 8.51% indirect stake.
Nexgram said it did not currently hold any Ire-tex securities. However, Tey holds 23.07% of Ire-Tex’s issued and paid-up capital and 8,750 Ire-Tex warrants.
According to the company, the completion of its par value reduction exercise will not lead to any adjustment to the respective offer prices and the issue price and therefore will not change the share, warrant and Iculs exchange ratios.
The offer will remain open for acceptances until 5pm on the 21st day of the offer document’s posting date or a later date as Mercury Securities may announce on Nexgram’s behalf unless Nexgram withdraws the offer with the Securities Commission’s written approval.
Nexgram said it intended to maintain Ire-Tex’s listing status on the Main Market of Bursa Malaysia.
Ire-Tex shares added 1 sen to close at 35.5 sen on Friday while Negram shares closed unchanged at 8 sen.