Dymon Asia Private Equity is backing a $45-million offer to take Malaysia-listed firm Yee Lee Corporation private.
Founded in 1968, Yee Lee is engaged in the production and distribution of edible oil and has expanded into other food verticals as well as packaging, marketing and distribution of fast moving consumer products, plantation and eco-tourism.
Under the unconditional takeover offer, Langit Makmur, a special purpose unit of Dymon Asia, will join Yee Lee’s founder and executive chairman Datuk Lim A Heng and other shareholders to acquire 79.7 million shares, equivalent to a 41.59 per cent stake, they don’t currently own in the firm at 2.33 ringgit apiece.
The offer price represents a 20.1 per cent premium compared to Yee Lee’s last transacted price on April 25 and 22.6 per cent over a six-month volume weighted average market price.
At the time of the announcement last Friday, Langit Makmur did not own any shares of the company.
UOB Kay Hian Securities is the underwriter for the transaction.
Yee Lee shares will be delisted from Bursa Securities upon completion of the takeover. “The joint offerors will not be taking any steps to address any shortfall in the public shareholding spread of Yee Lee in the event Yee Lee does not meet the Public Spread Requirement after the closing date,” it said.
The company also announced a trading suspension on Friday. The last transacted price gave it a market capitalisation of 371.71 million ringgit ($90 million).
Singapore-based Dymon Asia PE invests across Southeast Asia, focusing on the mid-market sector. The firm launched its maiden investment vehicle, Dymon Asia Private Equity (SE Asia) Fund, in 2012 with S$300 million in commitments from investors. Its second fund in 2017 secured $450 million in capital commitments.