Pre-listing takeover bid for PASDEC-WA

Written by Editor

PASDEC-WA, the company warrant of Pasdec Holdings Berhad created history when the warrant received a takeover offer prior to it being listed on Bursa Malaysia.  PASDEC-WA was given as a free sweetener for shareholders of the company to take up the recently completed right issue of Pasdec.  Pasdec raised RM40 million in the recently completed rights issue undertaken on a two for five basis with each rights share attached with a free warrant at an issue price of 35 sen each.  However, Jasa Imani Sdn Bhd, a substantial shareholder of Padec, triggered a mandatory general offer (MGO) condition when it ended up with 38.6% of the company from 28% prior to the rights issue as a result of it taking up the excess rights following the failure of Pahang State Development Corporation to take up its entitlement of the rights issue.  Jasa Imani had earlier provided an undertaking to subscribe all rights share not taken up to ensure full subscription of the rights issue.  Jasa Imani offered 52.5 sen per offer share and 1 sen per offer warrant under the MGO.   PASDEC-WA ended the first day of trading on 11 July at 13 sen, far above the MGO price.

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