Quick take: Euro Holdings down 6.5% in active trade

KUALA LUMPUR: Shares in EURO HOLDINGS BHD fell over 6.5% in early trade Wednesday after SPA Furniture acquired a 51% stake in the former, triggering the mandatory takeover offer.

The counter added 6.52%, or 1.5 sen to 21.5 sen. It is one of the most active counters on Bursa Malaysia with over 2.38 million shares traded.

SPA Furniture has acquired a 51% stake in Euro Holdings for RM27.26mil or 20 sen a share, which triggered the mandatory takeover offer to acquire the rest of the shares it does not own in Euro.

The ultimate joint offerors are Datuk Seri Lim Teck Boon and Datuk Lim Chaw Teng, who are directors and major shareholders of SPA Furniture with 99% and 1% holdings respectively.

The 20 sen offer price represents a 13% discount to yesterday’s closing price of 23 sen. It is also 4.31% lower than its five-day volume weighted average price of 20.9 sen.

Euro Holdings said the 20 sen offer price will be satisfied wholly in cash.

“The offer price is the highest price paid by the offeror and the joint ultimate offerors within the six months prior to the commencement of the offer period, ” it said.

SPA Furniture intends to maintain the listing status of Euro Holdings on the Main Market.

Source: TheStar