We feel that if the SC approves TAE’s application it will give the local capital market a really bad name. Defend itself against a takeover threat 9. takeover Published 6 November 2020. On Feb 12, TA Enterprise proposed to acquire up to 2.12 billion shares or 39.83% equity interest in TA Global under a conditional voluntary takeover offer at 28 sen each. Some significant mergers in recent business history include: 2010: British Airways and Iberia merge to form IAG. Kindly fill the form below, Disclaimer: by clicking the Submit button, it is deemed that you consent to the rules and terms set forth in the, Withdrawals from EPF pose modest negative impact on AUM, Bursa higher amid cautious market sentiment, Global investors value Ant Group at over US$200bil - sources, Censuria partners Dex-i for RM500mil logistics investment fund, Nokia to cut up to 10,000 jobs over next 2 years, Quick take: Scomi surges 285%, most active on Bursa, Oil drops as rising stockpiles compound Covid-19 demand concerns, Bond market sees net foreign inflow again in February despite MGS yield spike, Air Selangor, IWK ink agreement on sustainable water recycling initiative, World Bank: Malaysia to achieve high-income economy in 2024-2028. 115 likes. MSWG : TA Global's takeover offer unsatisfactory : The Malaysian Reserve : Download. As the Covid-19 pandemic is still ongoing, the independent adviser has also recommended holders to accept the cash option. The voluntary takeover offer shall be satisfied by a cash consideration of 28 sen for one TA Global share or a share exchange based on a ratio of 0.4211 for new shares in TA Enterprise to be issued at a price of 66.5 … “Holders who do not wish to be exposed to current business risks of TAE in light of the current Covid-19 situation may ‘accept’ the cash option,” it said. In the offer made by TAE, TAG shareholders were offered 28 sen a share or a share swap that priced TAE’s stock at 66.6 sen a piece. At the noon break, shares in TA Global were unchanged at 25.5 sen, with a market value of RM1.36 billion. TAE decided to withdraw the proposal three months after the takeover bid was made to TA Global. TA Enterprise said the voluntary takeover offer shall be satisfied by a cash consideration of 28 sen for one TA Global share or a share exchange based on an ratio of 0.4211 new share in TA Enterprise to be issued at an issue price of 66.5 sen each for one TA Global share. The bidder tells the target’s board of directors about its intention and makes an offer.The board then advises its shareholders to accept the offer. But there are other parties who have inked earlier deals, that not walking away from their obligations on the grounds of the pandemic.  {{item['V2 Header']}}, We would love to keep you posted on the latest promotion. KUALA LUMPUR (June 2): Trading of shares in retail stockbroking firm TA Enterprise Bhd (TAE) and its property arm TA Global Bhd has been suspended from 9am today pending an announcement. $(document).ready(function () { If TAE was to be allowed to withdraw its offer, would this open the floodgates of other offerors to also make similar applications? TAE had already owned 60% of TAG at that point in time. Meanwhile, TAE controls a 60.17% stake in TA Global. It is a litmus test for the SC. Increase market share 2. Holders who elect this option, while being able to continue participating in TAG Group (TA Global) via TAE’s interest in TAG, should also be aware that they will be exposed to broking and financial services, investment holdings as well as credit and lending business and the risk of low liquidity of TAE shares,” it said in a filing with Bursa Malaysia today. It is engaged in the engaged in hotel operations and financial services activities. }) TA Enterprise , KUALA LUMPUR (Nov 23): TA Enterprise Bhd’s (TAE) substantial shareholder and co-founder Datuk Tony Tiah’s takeover offer to acquire a 39.83% stake, which the company does not already own, in his flagship’s listed property arm TA Global Bhd is "not fair but reasonable". With the worse off environment for the hotel sector now, the earlier offer prices offer minority shareholders a decent exit. You can’t lose at that bargain price Covid or non Covid as markets will recover eventually as can be seen right now as countries are opening up and the TAE Group has more than RM1bn cash to weather this through. TA Enterprise’s non-interested shareholders (who may not be the shareholders of TA Global) may view TA Enterprise’s takeover of TA Global at 28 sen a share as a beneficial deal to them. readers found this article insightful, Copyright © 1995- Secure better distribution 5. At TAG and TAE’s current share prices of 21 sen and 46.5 sen respectively, both stocks are 25% and 30% below the pricing set out in the February offer. It made the announcement in Februay, about the same time as TA Global. , … “Accordingly, we advise and recommend that holders ‘accept’ the offer by electing the share exchange option. The United Nations has joined global condemnation of the military takeover in Mali, which saw President Ibrahim Boubacar Keïta forced to resign. Global Takeovers A number of jurisdictions have in place enhanced disclosures rules for shareholders of issuers involved in a takeover. The first TakeOver event was simply titled TakeOver and was held on May 29, 2014.  {{item['V1 Body']}} TA Global takeover in focus. TA Enterprise currently owns a 60.17% stake in TA Global, according to a Feb. 12 release. In TAE’s case, there will be repercussions from the decision made by the SC. The events are produced exclusively for the promotion's NXT brand division and air live on pay-per-view (PPV) and the WWE Network. The regulator has a tough decision to make, considering that TAE has cited the adverse impact of the Covid-19 pandemic to TAG’s business as the reason for making the application. There are many reasons why a firm may decide to undertake a takeover as part of its strategy, including to: 1. Hence, they typically do not have underlying agreements that trigger such offers. The private equity firm TA Associates backed a £600m buyout of OMGI in December 2017, subsequently renaming it Merian, but it sagged as funds flowed out of the business. TA Enterprise Bhd’s (TAE) application to ask the Securities Commission (SC) permission to withdraw its offer to buyout TA Global Bhd (TAG) heralds the drastic implications that the coronavirus pandemic can have on capital markets. “A decision will be made in due course once we have carefully reviewed the application and considered all factors related to it, ” says an SC spokesperson. On Tuesday, TAE said it was seeking the SC’s consent to withdraw its conditional voluntary offer to take over its property arm TAG. We use cookies and similar tools to enhance your shopping experience, to provide our services, understand how customers use our services so we can make improvements, and display ads, including interest-based ads. “Due to uncertainty in the aftermath of the Covid-19 pandemic, the estimated impact of the pandemic on TAG Group’s hotel operations remains uncertain. TAG in April, said it had suspended its hotel operations in Melaka, Thailand, Australia and Canada since March due to the pandemic. 2000: Glaxo Wellcome plc and SmithKline Beecham plc merge to form GSK plc . focus The effects of Covid-19 on the hotel business, which is TAG’s core business, has been crippling. "Notwithstanding this, given time, TAG Group’s hotels will recover their lost ground and start contributing effectively to TAG Group’s future financial performance after economies and international borders start to open up,” it said. Eliminate competition KUALA LUMPUR (Nov 23): TA Enterprise Bhd’s (TAE) substantial shareholder and co-founder Datuk Tony Tiah’s takeover offer to acquire a 39.83% stake, which the company does not already own, in his flagship’s listed property arm TA Global Bhd is "not fair but reasonable". KUALA LUMPUR (Dec 15): TA Enterprise Bhd (TAE) has received valid acceptances of 5.02 billion offer shares or 94.38% of the total number of issued shares in TA Global Bhd (TAG) on its conditional voluntary offer for shares of the property developer. TA Enterprise seeks SC nod to withdraw takeover bid for TA Global TA Enterprise Bhd (TAE) has submitted an application to the Securities Commission (SC) to withdraw its voluntary takeover offer to acquire up to 39.83% stake in property group TA Global Bhd (TAG). On the other hand, many corporate owners are facing extenuating circumstances that puts them in a difficult position to execute deals they entered into earlier. This is what makes a merger different to a takeover: i.e. $('#spanCopyright').text(theDate.getFullYear()) However, the independent adviser highlighted that TA Global’s hotel operations for the financial year ending Dec 31, 2020 (FY20) are expected to be negatively impacted by Covid-19. A merger involves a new firm being created; A takeover involves one firm being acquired by another; Some Examples of Mergers. All eyes will be on the regulator decision and reasoning for this case. Tiah had then offered 66 sen each under a takeover offer of TA Enterprise but minority shareholders rejected it. Global Take Over Team Updates As the name suggests, a friendly takeover occurs when the target company is happy about the arrangement. TA Enterprise Bhd's share price rose as much as eight sen or 14.81% to 62 sen in morning trades today after the company proposed to buy an additional stake in 60.17%-owned subsidiary TA Global Bhd under a conditional voluntary takeover offer. Across the causeway, Singapore-listed BreadTalk looks like it is going ahead with its plans to privatise the company amidst plunging profits. Says one fund manager: “This is a very important issue. The offer was first made on Feb 12, when TAG said it had received a conditional voluntary take over from TAE to acquire close to 40% shares in the former at a price of 28 sen a piece. Overcome barriers to entry to target markets 8. Spread risks by diversifying 7. Share page. Securities Commission Global Take-Over Team. As part of the deal, the major shareholder of both TAG and TAE, Datuk Tony Tiah, was looking to fork out cash to subscribe for 550.54 million TAE shares at 66.5 sen. Acquire intangible assets (brands, patents, trade marks) 6. However, if TAE is allowed the waiver, it will send a bad message to the market. Acquire new skills 3. In a written response to StarBizWeek, the SC said that it is reviewing TAE’s application to withdraw the voluntary offer for TAG pursuant to Rule 9.11. This would raise proceeds of RM366.11mil for TAE, which would be utilised solely to fund the cash option for the proposed buyout of TAG.Based on TAE’s current share price, Tiah would be paying 30% above market prices should he continue with the privatisation deal. Our website is made possible by displaying non-intrusive online advertisements to our visitors. , var theDate = new Date(); To finance the cash offer, TAE will place out one block of 550.54 million new shares to its founder-cum-controlling shareholder Tiah at 66.5 sen each. TA Global. Saturday, 09 May 2020 TA Enterprise Bhd ’s (TAE) application to ask the Securities Commission (SC) permission to withdraw its offer to buyout TA Global Bhd (TAG) heralds the drastic implications that the coronavirus pandemic can have on capital markets. KUALA LUMPUR (Nov 23): TA Enterprise Bhd’s (TAE) substantial shareholder and co-founder Datuk Tony Tiah’s takeover offer to acquire a 39.83% stake, which the company does not already own, in his flagship’s listed property arm TA Global Bhd is "not fair but reasonable". TA Enterprise said the voluntary takeover offer shall be satisfied by a cash consideration of 28 sen for one TA Global share or a share exchange based on a ratio of 0.4211 for new shares in TA Enterprise to be issued at a price of 66.5 sen each for one TA Global share. This was the advice of independent adviser BDO Capital Consultants Sdn Bhd to the minority shareholders on the takeover offer of 28 sen a share. The offeree, TA Global Berhad (TAG), was incorporated on 8 August 2008 and was listed on the Main Market of Bursa Securities on 23 November 2009. , , Tags / Keywords: Star Media Group Berhad (10894D), {{item['V1 Header']}} The local hotel sector is projected to lose RM3.3bil in revenue by next month, as a result of the movement control order (MCO) which has been extended to May 12. This would clearly be a negative for the local capital market. During an offer period, any party who may exercise material influence over the outcome of an offer must report their positions and dealings in … A friendly takeover is an acquisition where the owners of … Another fund manager points out that while the takeover price first offered by TAE was not that attractive, however the share price of both TAG and TAE have fallen significantly lower since the takeover announcement in February. On Feb 12, TAE announced to make a conditional voluntary offer to buy out 2.12 billion shares, which are equivalent to a 39.83% stake in TA Global it does not already own. For the major shareholder on the other hand, it just might be too costly now. TAG is principally engaged in investment holding company and the provision of management services to its subsidiaries. Perhaps some middle of the road approach would be found. close. On Feb 12, TA Enterprise said it was making a conditional voluntary offer to buy out 2.12 billion shares or a 39.83% stake in TA Global that it does not own for 28 sen each. The voluntary takeover offer shall be satisfied by a cash consideration of 28 sen for one TA Global share or a share exchange based on a ratio of 0.4211 for new shares in TA Enterprise to be issued at a price of 66.5 … Subsequently, the friendly takeover goes ahead. NXT TakeOver is a series of periodic American professional wrestling events produced by WWE, a professional wrestling promotion based in Connecticut. TakeOver events have … Initially, TA Enterprise proposed acquiring up to 39.83% or 2.12 billion ordinary shares of TA Global in a bid to take the company private. 53 : 15/02/2020: Tiah looks to privatise TA Global : StarBiz Week : Download. 52 : 27/02/2020: TA Global minorities cry foul over privatisation proposal : The Sun : Download. We will lose major governance points.”. The cash offer and the share issue prices represent a premium ranging from 12.22% to 20.85% and from 4.72% to 22.29% over the 5-day, 1-, 3-, 6- and 12-month volume-weighted average price of TA Global shares up to and including Feb. 12, respectively. TA Enterprise said shareholders in TA Global can opt for a cash payout or a share swap if they accepted the takeover offer. TA Global To raise funds for the cash offer, TA Enterprise said it would issue up to 550.54 million new shares at 66.5 sen each to Tiah, who is TA Enterprise’s and TA Global’s … Global Car Industry; Business of Sport; Insurer RSA's shares soar on £7.2bn takeover talks . Hostile takeover bids are usually initiated against the interests of the management of the target company and are addressed directly to its shareholders as a voluntary open offer. All three parties collectively own 70.53%. The acceptance rate from the property arm TAG was as at 5pm on […] In other words, its directors and shareholders have approved the offer. In a filing with Bursa Malaysia today, TA Enterprise said it has received a supplemental notice from Tiah on his takeover offer on Monday (July 2), saying that in the event that his offer turns unconditional, it would trigger an obligation to undertake another MGO for TA Global shares, for an offer price of … On Feb 12, TA Enterprise proposed to acquire up to 2.12 billion shares or 39.83% equity interest in TA Global under a conditional voluntary takeover offer at 28 sen each. Access economies of scale 4. The operating segments of the group are Broking and financial services, Investment holding, Credit and lending, Property investment, Property development and Hotel operations. Tiah, the co-founder and controlling shareholder of the two listed companies, and his parties acting in concert collectively hold a 42.37% stake in TAE and 15.34% in TA Global. Its subsidiaries are principally involved in, amongst others, property development, property investment, hotel operations, … Read also:Tony Tiah to take TA Global private via his flagship company. SC Rome has forged a relationship with Jewish Elite on a global scale what was the reason for? Between the cash option and share exchange option, the independent adviser is of the view that the share exchange option is more favourable as the implied offer price of TA Global of 94.9 sen to 95.2 sen represents a discount of approximately 2.96% to 3.26% to the fair value per TA Global share. , 100% It’s founders George Quek and Katherine Lee together with Minor International are offering to acquire all the issued ordinary shares in BreadTalk that they collectively do not own at a price of S$0.77 through a voluntary conditional cash offer. TheStar Sat, May 09, 2020 08:40am - 8 months ago. Enter new segments of an existing market 10. TA Enterprise Bhd ’s (TAE) application to ask the Securities Commission (SC) permission to withdraw its offer to buyout TA GLOBAL BHD (TAG) heralds the drastic implications that the coronavirus pandemic can have on capital markets. Bedakong116 I agree as shareholder of TAE it makes sense to buy TAGB as it is such a steal at 28cts per share vs the RNAV of between 110cts to 117cts. Stock: TA (4898), Company: TA ENTERPRISE BHD, Description: TA Enterprise Bhd is a Malaysia based investment holding company. Share.