KUALA LUMPUR: Mutiara Goodyear Development Bhd on Tuesday, Apr 26 said it had been reprimanded by the Securities Commission (SC) for failing to seek prior approval from shareholders during the course of a takeover by ATIS Corp Bhd and the latter's subsidiary.
In a filing with Bursa Malaysia on Tuesday, Mutiara Goodyear said the SC had in a letter dated April 19 reprimanded the board for failing to comply with Section 35(1) of the Malaysian Code on Takeovers and Mergers 1998.
This was pursuant to the disposal of assets deemed to be of a material amount on an aggregate basis without obtaining prior approval from its shareholders, Mutiara Goodyear said.
According to Mutiara Goodyear, this was during the course of the takeover offer last year by ATIS Corp and ATIS IDR Ventures Sdn Bhd (AIV) for all the remaining shares in Mutiara Goodyear it did not already own.
To recap, on Sept 24 last year, Mutiara Goodyear announced that it had received a takeover offer from ATIS Corp and AIV for the remaining shares in Mutiara Goodyear for 97 sen cash per share.
In the notice of mandatory takeover offer, Maybank Investment Bank, on behalf of ATIS Corp and AIV, said the joint offerors and persons acting in concert had a total deemed interest of 44.4% in Mutiara Goodyear.
This came about after ATIS Corp shareholders approved a resolution allowing AIV to purchase 30.28% equity interest in Mutiara Goodyear for a total consideration of RM67.82 million or 97 sen per share.
ATIS Corp's shareholders also gave the green light for AIV to acquire a 12% stake from Kee Cheng Teik and Rejoice Matrix Sdn Bhd for a consideration of RM26.88 million or 97 sen per share.
AIV also received the mandate from ATIS Corp shareholders to acquire up to 8.66% equity interest in Mutiara Goodyear at a price not higher than 97 sen per share.
Mutiara Goodyear's shares ended two sen lower at RM1.18 on Tuesday.
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