Khazanah launches formal offer for Parkway Holdings
In accordance with its earlier announcement, Khazanah has offered to acquire 313 million shares of Parkway Holdings from the shareholders in order to up its stake to over 51% from the current 23%. This tentatively sets a closing date for the offer on July 8. According to Singapore’s law on takeovers, an offer must be kept open for at least 28 days after the date on which the offer document was posted.
Fortis would be keenly watching the kind of response that Khazanah’s offer elicits among Parkway shareholders. It can heave a sigh of relief, in case Khazanah’s offer of $3.78 per share fails to generate great response. Fortis can then choose to postpone its decision on upping its stake in Parkway. However, according to Singapore laws the Khazanah may vary the offer by increasing the offer price for the shares or by extending the period in which the offer remains open. Where a variation in the consideration is made, shareholders who agreed to sell before the variation are also entitled to receive the increased consideration.
However, Malaysian media reports that Khazanah may not be in the mood to offer a better deal than the existing one. Otherwise, Fortis may have to launch a more lucrative counteroffer if it has to keep a majority control over Parkway, which it considers a
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