Quick take: TA Enterprise jumps 13% on property arm privatisation

KUALA LUMPUR: Shares in TA Enterprise Bhd jumped almost 13% in early trade Thursday on its plan to privatise its property arm TA GLOBAL BHD for 28 sen per share.

The counter, one of the top gainers on Bursa Malaysia, rose 12.96%, or seven sen to 61 sen, its highest since early December 2019.

TA Enterprise is making a conditional voluntary offer to buy out 2.12 billion shares, which is equivalent to a 39.83% stake in TA Global it does not already own. TA Enterprise currently owns a 60.17% stake.

The stockbroking group offers two options, namely cash offer or a share swap, for TA Global’s minority shareholders.

TA Global shareholders may choose from either a cash offer of 28 sen per existing share held, or a share swap based on an exchange ratio of 0.4211 new ordinary share in TA Enterprise to be issued at 66.5 sen each for every TA Global share surrendered.

The 28 sen offer price represents a 21.7% premium against its last trading price of 23 sen. It is also a 20.85% premium to its five-day volume weighted average price of 23.17 sen.

TA Enterprise said TA Global has sought several extensions of time from Bursa Securities to comply with the public shareholding spread requirement.

Source: TheStar