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Tekala Plans Reverse Takeover, Property Development Venture
Malaysia Daily Bulletin | 04 December 2015
  • Loss-making timber processing company Tekala Corporation has proposed a reverse takeover by WMG Holdings, and the acquisition of five property assets worth RM513 million from Syarikat Kretam (Far East) Holdings, with intent to diversify into property development.
  • The exercise entails WMG exchanging the entire issued and paid-up share capital in Tekala on the basis of 133 new RM0.10 shares in WMG at an issue price of RM0.50 per share, for every 100 existing Tekala shares held at an entitlement date to be determined later.
  • Upon completion of the deal, Tekala’s shareholders shall become shareholders of WMG, and Tekala shall become a wholly-owned subsidiary of WMG.

Significance: The proposal, which involves RM513 million, is more than 10 times the firm’s market capitalisation and Tekala said it presents an opportunity for existing shareholders of the company to participate in a proposed new core business in property development that is viable and profitable.

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