YOKO ... Feb10

Singapore-based HSG Investments Pte Ltd has launched a conditional mandatory takeover offer for all the shares it does not already own in automotive battery manufacturer Tai Kwong Yokohama Bhd, at RM1.09 cash per share.

HSG had on Jan 31 2010 acquired 9.5 million shares, representing 10.29% stake, in Tai Kwong, for RM1.09 per share or about RM4.887mil. The acquisition brought its stakeholding in Tai Kwong to 40.75% from 30.46% previously, triggering the mandatory takeover requirement threshold of 33%.

HSG, an investment holding company incorporated in October 2007, is a wholly owned subsidiary of Hup Soon Global Corp Ltd, which has interests primarily in the marketing and distribution of automotive-related products and industrial supplies.

The offer shall be conditional upon the offeror having received valid acceptances from the holders of the offer shares, which would result in the offeror holding more than 50% of the voting shares of Tai Kwong.

HSG does not intend to maintain the listing status of Tai Kwong in the event Tai Kwong does not comply with the (25%) shareholding spread requirement of Bursa as a result of the acceptances received pursuant to the offer.

For the third quarter ended Sept 30, the company reported net profit of RM6.49mil on revenue of RM52.76mil compared with net loss of RM1.52mil and revenue of RM46.78mil in the previous corresponding period.