Hong Leong Asia looks to complete Tasek Corp takeover

Singapore-listed Hong Leong Asia is looking to take Malaysia’s Tasek Corp private in a deal worth an estimated MYR128.61m (US$30.6m), according to The Edge. The company currently controls 80.8 per cent of Tasek through two subsidiaries, HL Cement (Malaysia) and Ridge Star, and has submitted a voluntary takeover offer to acquire the remaining shares. 

Together, the subsidiaries hold 97.89m ordinary shares in Tasek, with the takeover involving the remaining 19.2 per cent of ordinary shares and 37 per cent of preference shares.

Tasek has stated that the offer price of MYR5.50 per share represents a premium of 8.1 per cent over the company's five-day volume-weighted average price. According to the stock's closing price of RM5.05 yesterday, the company has a market value of MYR611.77m. HL Cement and Ridge Star do not intend to maintain the company’s listing status if the takeover is completed.