After MGO, Johari Ghani’s JAG now controls 62.72% stake in KUB

KUALA LUMPUR (March 18): The mandatory general offer (MGO) by JAG Capital Holdings Bhd for KUB Malaysia Bhd, at 60 sen per share, has seen it obtain 163.82 million shares, equivalent to a 29.44% stake, in KUB.

This has bumped up JAG’s shareholding in KUB to 62.72% or 349 million shares, according to a statement issued by Maybank Investment Bank, on behalf of JAG.

The MGO closed at 5pm on Monday.

JAG said in the circular to shareholders that it does not intend to keep KUB’s listing status if it secures 90% of all KUB shares, but would keep KUB listed if it secures between 75% and 90%.

JAG is controlled by Minister of Plantation Industries and Commodities Datuk Seri Johari Abdul Ghani, who holds a 98.75% stake in the company.

On Jan 9, 2024, JAG was obliged to make an MGO for KUB after it had bought 1.79 million KUB shares on the open market, which raised its shareholding in the listed entity to 33.28%.

Prior to that, KUB proposed a related party transaction to buy a 86.65% stake in cables and wire manufacturer Central Cables Bhd (CCB) from its major shareholder JAG for RM119.42 million, by issuing redeemable convertible preference shares.

Shares of KUB have traded largely range-bound between 50 sen and 60 sen in the last two years.  On Monday, the counter closed one sen or 1.7% lower at 58.5 sen, valuing it at RM326 million.

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