SE Asia Digest: Pangolin seeks to block Challenger offer; Wegmans eyes Bursa shift

Pangolin Investment Management is close to get 10% votes to block Challenger exit offer meanwhile Wegmans Holdings is proposing to transfer to Bursa Malaysia’s main market.

Pangolin is close to get 10% votes to block Challenger exit offer

The Singapore-based fund manager Pangolin Investment Management said it is close to obtain 10% shares of vote that is required to block the exit offer from Digileap Capital valued $183 million. The fund manager currently holds 2.94% in SGX-listed electronic retailer Challenger Technologies.

Pangolin’s Director James Hay mentioned it has received emails from fellow minority shareholders pledging against the exit offer, as cited by Business Times. The shares amount of those minority shareholders achieve 9.8%, including Pangolin’s stake.

Challenger Technologies, which plans to delist from the stock exchange, will not able to continue the process if at least 10% of shareholders against the plan. This decision will be taken at the EGM on June 27.

The listed company announced the proposed voluntary delisting in March, in which Digileap offers a cash exit at SGD 0.56 per shares and will value the company at total SGD 183m. The price offered represents more than double of the company’s net asset value per share of SGD 0.28 at 31 March 2019.

Challenger is 78.64% owned by the Loo family and Ng Leong Hai.  These shareholders have given irrevocable undertakings to vote in favour of the delisting and accept the exit offer.

Meanwhile Digileap is 70% owned by the Loo family and 30% owned by Singapore-based Dymon Asia Private Equity. DBS is advising Digileap for the delisting and exit offer.

Wegmans Holdings proposes to transfer into Bursa Malaysia’s main market

The home furniture maker Wegmans Holdings Bhd is proposing to transfer its listing from ACE market to the Main Market of Bursa Malaysia.

Managing Director Keh Wee Kiet mentioned the company has met the criteria for the transfer, which include meeting the profit track record, public shareholding spread, healthy financial position and liquidity, as cited by The Edge.

The proposed transfer is expected to enhance access to the broader capital market to fund Wegmans’ future growth plan.

The process will be subject to approvals from the Securities Commission Malaysia, Bursa Securities and any other relevant authority, if required.

Wegmans has appointed RHB Investment Bank as the principal adviser in this process.

Wegmans was listed on the ACE Market in March 2019. The company noted a MYR 11.17m of cash balance and MYR 14.13m of net cash flow from operating activities by end of December 2018.