Hii Capital Holdings Sdn Bhd launched an unconditional mandatory takeover offer for the remaining shares in ASteel Group Bhd at 7.5 sen per share in cash, after acquiring a controlling 52.94% stake in the Main Market-listed steel group.
According to the offer document dated Sept 14, Hii Capital had acquired 270 million ASteel shares, representing 52.94% of the company, from a group of vendors for RM20.25 million, or 7.5 sen per share. The direct business transaction was completed on Aug 26.
Hii Capital is wholly owned and controlled by Datuk Clifford Hii Toh Leong, who is deemed interested in the 52.94% stake through the investment holding company.
The acquisition triggered the requirement for Hii Capital to extend a mandatory offer for the remaining 240.03 million ASteel shares, equivalent to about 47.06% of the company, as well as any new shares issued before the offer closes following the exercise of outstanding employee share options.
The offer is unconditional because Hii Capital already controls more than 50% of ASteel’s voting shares.
Shareholders have until 5pm on Oct 5, 2026 to accept the offer unless the closing date is subsequently revised or extended.
The 7.5 sen offer price was equal to ASteel’s last traded price and five-day volume-weighted average price immediately before the takeover notice.
It represented premiums of between 4.31% and 11.61% to ASteel’s one-month, three-month, six-month and one-year VWAPs before the notice.
However, ASteel’s share price subsequently rose. Based on the latest practicable date of Sept 8, the offer price represented discounts of between 16.85% and 31.19% to ASteel’s prevailing market price and various VWAP measures. Its last traded price at that date was 9.5 sen, compared with the 7.5 sen offer.
MainStreet Advisers Sdn Bhd has been appointed as independent adviser, with its advice to shareholders due by Sept 24.
Hii Capital and Clifford Hii said they intend to maintain ASteel’s listing on Bursa Malaysia’s Main Market.
