INTERVIEW ECM LIBRA DIRECTOR AND MANAGING DIRECTOR AT WISMA GENTING
KUALA LUMPUR: ECM Libra
Financial Group Bhd’s board has been notified of a potential mandatory general offer (MGO) from its managing director Lim Kian Onn.
In a filing with Bursa Malaysia, the financial services firm said Plato Capital Ltd’s subsidiary Truesource Sdn Bhd has signed a conditional agreement with Amcorp Group Bgd, Hikkaya Jaya Sdn Bhd, Arab-Malaysian (CSL) Sdn Bhd and Equity Vision Sdn Bhd for the purchase of shares.
Lim is a director and substantial shareholder of both ECM Libra and Singapore-listed Plato Capital Ltd. As of November last year, he held a 23.87% direct interest in ECM Libra.
ECM said its board was informed that under the agreement, there were conditions precedent which must be satisfied in order for Truesource, the buyer, to complete the purchase of the sale shares.
Lim has informed that on the agreement becoming unconditional, he would undertake an MGO to acquire all the remaining shares in ECM Libra not already owned, which conforms with the provisions of the Malaysian Code on Take-Overs and Mergers, 2010.
Lim co-founded the ECM Libra group in 2002. He was managing director from May 2007 to August 2010, when he was redesignated non-executive director. He returned to the MD post in July last year.
ECM Libra requested for suspension of trading of its securities on Wednesday, and on Wednesday asked for the suspension to be further extended till 12.30pm on Thursday, Feb 25.
ECM shares closed at 33 sen on Tuesday, prior to the suspension. The share price had closed above 40 sen from June to November last year before it began sliding to the current level.
On Dec 10, 2015, the company reported a 93.3% drop in net profit for the third quarter ended Oct 31 to RM1.43mil from RM21.45mil a year earlier.
For the nine-month period, net profit was dragged down 34.9% to RM16.99mil compared with the corresponding period in 2014. This was a reversal from the strong 235% year-on-year growth recorded for the first half-year.
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