Hong Leong Asia Ltd. (SGX:H22) made an unconditional voluntary take-over offer to acquire an additional 19.2% stake in Tasek Corporation Berhad (KLSE:TASEK) for approximately MYR 130 million on May 28, 2019. The consideration comprises MYR 5.5 in cash to be paid for each ordinary share and each preference share. As of August 2, 2019, the offer price has been increased to MYR 5.8 per ordinary and preference share. The terms of the revised offer are final and there will not be any further revision to such terms. As per the offer, Hong Leong Asia made the offer to acquire 23.26 million ordinary shares and 0.12 million preference shares of Tasek Corporation. Hong Leong Asia Ltd. currently owns 80.8% stake directly and indirectly in Tasek Corporation Berhad and owns 63% of the preference shares of Tasek Corporation Berhad. In a related transaction, Hong Leong Asia Ltd. acquired 6.5% stake in Tasek Corporation Berhad for MYR 43.5 million on May 28, 2019. Hong Leong Asia confirmed that the offer will not fail due to insufficient financial capability of Hong Leong Asia. Hong Leong Asia confirmed that it has sufficient financial resources to satisfy full acceptance of the offer. As of August 2, 2019, Hong Leong Asia Ltd. and CIMB Investment Bank Berhad confirmed that Hong Leong Asia Ltd has sufficient financial resources to satisfy full acceptance of the revised offer and the revised offer will not fail due to insufficient financial capability of Hong Leong Asia Ltd. In case of acquiring 90% of the shares in total, Hong Leong Asia may acquire the remaining shares within 4 months of the offer under compulsory acquisition. The compulsory acquisition provisions do not apply to the offer for preference shares. Following the acquisition, Hong Leong Asia does not intend to maintain the listing status of Tasek Corporation on the main board of Bursa Malaysia Securities Berhad. Following the acquisition, Hong Leong Asia intends to continue the existing businesses of Tasek Corporation. Hong Leong Asia has no plans to dismiss or make redundant the employees of Tasek Corporation as a direct consequence of the offer.

The offer is not conditional upon the receipt of any minimum level of valid acceptances of the offer shares. The offer document will be dispatched within 21 days from the date of the notice or any extended period of time as may be directed or permitted by Securities Commission Malaysia (SC). Hong Leong Asia may only withdraw the offer with the prior approval of SC. The offer will remain open for acceptances until 21st day after the posting date or such later date as Hong Leong Asia may decide. If the offer is revised after the posting date, it will remain open for acceptances for at least 14 days from the date of the posting of the written notification of the revision to the holders. On June 27, 2019, Securities Commission Malaysia has notified that it has no further comments on this independent advice circular. Mercury Securities Sdn. Bhd recommended that the offer in respect of the ordinary shares is fair and reasonable and although the offer in respect of the preference shares is not fair but it is reasonable. Accordingly, Mercury Securities recommended accepting the offer in respect of both the offer ordinary shares and the offer preference shares and accordingly, the Board of Tasek Corporation recommended the shareholders to accept the offer in respect of both the offer ordinary shares and the offer preference shares. As of August 2, 2019, the Board of Hong Leong Asia approved the issuance of the notice of revised offer. As per the offer document dated June 18, 2019, the closing date for the offer shall be July 9, 2019. As of July 5, 2019, the closing date for the offer has been extended to July 22, 2019. As of July 19, 2019, the closing date for the offer has been extended to August 5, 2019. As of August 2, 2019, the transaction is expected to be completed on August 19, 2019. The transaction is not expected to have a material impact on the net tangible assets per share or earnings per share of Hong Leong Asia for the current financial year.

Rajah & Tann acted as the legal advisor to Hong Leong Asia Ltd. Andrew Tan, Debbie Leong, Lim Yang Hoon, Audrey Wong and Jonathan Lee of CIMB Investment Bank Berhad acted as financial advisors to Hong Leong Asia Ltd. As of May 31, 2019, Mercury Securities Sdn. Bhd. was appointed as financial advisor for Tasek Corporation. Tricor Investor & Issuing House Services Sdn Bhd acted as registrar for Tasek Corporation and Hong Leong Asia. Knight Frank Malaysia Sdn Bhd and Rahim & Co International Sdn Bhd acted as valuers in the offer.

Hong Leong Asia Ltd. (SGX:H22) completed the acquisition of an additional 7.36% stake in Tasek Corporation Berhad (KLSE:TASEK) for approximately MYR 51.7 million on August 19, 2019. Hong Leong Asia acquired 8.92 million ordinary shares and 0.01 million preference shares in Tasek Corporation at an offer price of MYR 5.8 per ordinary and preference share. Now, Hong Leong Asia directly and indirectly owns 88.13% stake in the ordinary shares and 64.91% stake in the preference shares of Tasek Corporation.