KUCHING: Kim Hin Industry Bhd has advised shareholders to await the independent advice circular before making any decision on the proposed takeover offer by its controlling shareholders.
In a circular issued on July 11, independent non-executive director Dato Sim Kheng Boon urged shareholders to carefully review both the offer document and the advice circular before acting.
“You are advised not to take any action which may be prejudicial to your interests and to read the offer document and the independent advice circular carefully before taking any action(s) in relation to the offer shares,” he said.
The company has appointed NewParadigm Securities Sdn Bhd as the independent adviser to provide comments, opinions, and recommendations to non-interested directors and minority shareholders.
The joint offerors — Kim Hin (Malaysia) Sdn Bhd (KHSB) and executive chairman Chua Seng Huat — are proposing to acquire the remaining 52.94 million shares, representing 37.75 per cent of the company’s issued shares, at 85 sen per share.
The total offer is valued at approximately RM45 million.
The offer is unconditional, as the offerors and persons acting in concert (PACs) already collectively hold more than 50 per cent of the voting shares.
The PACs include several Chua family members and related parties who are also directors or shareholders of KHSB and Kim Hin.
Kim Hin received the Notice of Unconditional Voluntary Take-Over Offer from UOB Kay Hian (M) Sdn Bhd (UOBKH) on behalf of the offerors on July 4.
The offer document — which includes the form of acceptance and transfer — will be despatched within 21 days of the notice, or within an extended period approved by the Securities Commission Malaysia (SC).
The independent advice circular will be issued within 10 days of the offer document’s despatch or a later date, subject to SC approval.
The offerors do not intend to maintain Kim Hin’s listing status.
Should they receive acceptances amounting to 90 per cent of the offer shares, they plan to invoke Section 222(1) of the Capital Markets and Services Act 2007 to compulsorily acquire the remaining shares. Bursa Malaysia will then suspend the stock five market days after the offer closes, setting the stage for delisting.
If the 90 per cent threshold is not met, the offerors reserve the right to revise the offer price — at least two days before the offer closes — and extend the offer period.
As at March 31, 2025, Kim Hin had a net asset per share of RM1.88, with cash and bank balances of RM51.1 million and retained earnings of RM64.1 million.
Following the announcement, Kim Hin’s shares hit the limit-up price of 76 sen on Monday — a 30 sen jump from its last traded price of 46 sen — but saw no transactions at that level.
The next day, 14.6 million shares were traded at prices between 84 sen and 85 sen, matching the offer price.
However, trading volume slowed thereafter, with 936,600 shares traded on Wednesday, 1.42 million on Thursday, and 258,800 on Friday.
The stock ended the week at 85 sen.
