KUCHING: Kim Hin Industry Bhd will apply to Bursa Securities for an extension of time to rectify the shortfall in its public shareholding spread, says the ceramic tile manufacturer.
As at August 22, 2025, the company’s public shareholding spread stood at 23.75 per cent, and therefore does not comply with the requirement of 25 per cent.
“The company has yet to formulate any rectification plan to address the shortfall in the public spread requirement.
Accordingly, the company will apply to Bursa Securities for an extension of time to rectify the shortfall and will continue to monitor the level of the public shareholding spread and make the necessary announcements,” Kim Hin told the local bourse.
Kim Hin said the shortfall in public spread was a direct consequence of valid acceptances pursuant to the offer and the dealings in Kim Hin shares by its executive chairman Chua Seng Huat, being one of the joint offerors (the other is Kim Hin (Malaysia) Sdn Bhd) in their bid to take the company private with an offer price of 85sen per share.
The public spread had fallen from 29.51 per cent recorded on July 4 when the joint offerors launched a 85sen per share unconditional voluntary take-over bid for the remaining 52.94 million shares or 37.75 per cent in Kim Hin which they do not already owned. Kim Hin a total of about 140.24 million issued shares (excluding treasury shares).
Paragraph 8.02(1) of the Listing Requirements stipulates that a listed issuer must ensure that at least 25 per cent of its total listed shares (excluding treasury shares) are in the hands of the shareholders. In their offer document, it is stated that the joint offerors do not intend to maintain the listing status of Kim Hin.
As such, they will not be taking any steps to address the shortfall in the public shareholding spread in the event that the company does not meet the public spread requirement after the closing date of the offer.
On the extended closing date of the offer on August 22, the joint offerors failed to achieve the threshold of 90 per cent of the issued shares of Kim Hin that will pave way for them to privatise the company as they managed to secure only 95,986,790 shares (68.45%). Prior to the offer, the joint offerors held 87,732,350 Kim Hin shares (62.56%).
During the offer period, a substantial shareholder in Dato Chew Chiaw Ann emerged after he purchased 9.41 million shares (6.71%) from the open market.
The joint offerors have also said that if they do not reach the 90 per cent target but holding more than 75 per cent of Kim Hin issued share capital, they intend to continue pursue their plan to privatise Kim Hin through an “appropriate privatisation route” at the relevant time, subject to them being able to procure the necessary financing for such an exercise.
Kim Hin’s appointed independent adviser NewParadigm Securities Sdn Bhd had advised company’s non-interest directors and minority shareholders to reject the 85sen a share offer as it is “not fair” and “not reasonable” as the offer price is below the company’s fair value notwithstanding the offer price is at a premium to the historical market prices of Kim Hin shares in the last two years.
Based on the asset-based valuation methodology using the revalued net asset value (RNAV) of Kim Hin shares, NewParadigm said the offer price represents (i) a discount of RM2.25 or approximately 72.58 per cent per Kim Hin share of RM3.10 and (ii) a discount of RM1.03 or approximately 54.79 per cent to the latest unaudited net asset per Kim Hin share of RM1.88 as at March 31, 2025.
A net revaluation surplus of about RM170.72 million was recorded after Laureclap Sdn Bhd carried out a valuation exercise on 20 investment properties of Kim Hin group in Malaysia and Singapore in April this year.
Kim Hin’s three independent directors — Datuk Sim Kheng Boon, Kho Soon Kheng and Aw Tai Hui — concurred with New Paradigm and they had also recommended minority share holders to reject the 85sen a share offer. With the 85sen a share offer lapsed and no revised offer announced by the joint offerors as some minority shareholders might have hoped for, trading in Kim Hin shares have become less active, with merely 25,000 shares changed hands as the stock price dropped to 82.5sen on Monday.
