(KUALA LUMPUR) Exsim Group's founders, the Lim brothers, are set to acquire a significant 65.9% stake in Pan Malaysia Holdings Bhd (PM Holdings) from three companies linked to prominent businessman Tan Sri Khoo Kay Peng for RM36.73 million, equivalent to six sen per share.
This move follows a report in the Jan 22-28 edition of The Edge Malaysia hinting at various parties eyeing a block of shares in PM Holdings.
The purchase price reflects a notable 45% discount to PM Holdings’ closing price of 11 sen on Thursday, valuing the group at RM102.17 million.
Under the agreement inked on Thursday, the Lim brothers, via Exsim Hospitality Holdings Sdn Bhd, will acquire a 38.59% stake in PM Holdings from Loyal Design Sdn Bhd, an 18.4% stake from MUI Media Ltd, and an 8.91% stake from Megawise Sdn Bhd, as per PM Holdings' stock exchange filing.
Exsim Hospitality is mandated to make an unconditional mandatory takeover offer to purchase all remaining shares in PM Holdings at six sen per share in cash, PM Holdings stated.
However, Exsim Hospitality aims to retain PM Holdings’ listing status on Bursa Malaysia.
Loyal Design and MUI Media are wholly-owned subsidiaries of Malayan United Industries Bhd (MUI), while Megawise is wholly-owned by cocoa-based biscuits maker Pan Malaysia Corp Bhd (PM Corp), in which MUI holds a 51% stake.
Khoo holds an indirect 41% interest in MUI, through Cherubim Investment (HK) Ltd, Norcross Ltd, Bonham Industries Ltd, and KKP Enterprises Sdn Bhd.
Exsim Hospitality, on the other hand, is 25%-controlled by Lim Aik Fu, with the remaining stake equally divided between his elder brothers Lim Aik Hoe and Lim Aik Kiat.
Aik Hoe and Aik Kiat serve as managing directors of Exsim Group, while Aik Fu is the deputy managing director. The trio co-founded the real estate development group in 2008.
PM Holdings became a takeover target after the divestment of its stockbroking and asset management subsidiaries PM Securities Sdn Bhd, PCB Asset Management Sdn Bhd, and Miranex Sdn Bhd to NewParadigm Capital Ventures Sdn Bhd for RM90 million in November last year.
Following the divestment, PM Holdings retained the 10-storey Corus Paradise Resort in Port Dickson and the adjacent land, valued at RM34.83 million, according to the group's annual report for the year ended June 30, 2023.