Kuala Lumpur, 7 August 2009
Takaso shareholders ordered to be compensated over failed mandatory offer
The Kuala Lumpur High Court today directed Up & Famous Sdn Bhd and 6 others (the Defendants) to make an offer and compensation scheme to all relevant shareholders of Takaso Resources Berhad with respect to their failure to carry out a mandatory offer (MO) under the Malaysian Code on Take-overs and Mergers, 1998.
On 22 December 2006, the Securities Commission Malaysia (SC) filed a civil suit against the Defendants as parties acting in concert for breaching the Code by increasing their interest in Takaso when, having collectively held more than 33% of the shares in Takaso, they increased their interest by more than 2% within 6 months without undertaking a mandatory offer to the remaining shareholders of Takaso.
The relief sought against the defendants requires them to compensate the affected shareholders of Takaso as at 17 January 2002, when the mandatory offer ought to have been made. In the event that they do not carry out the compensation scheme, the SC may take further execution proceedings against the defendants as allowed by the Court.
High Court Judge Dato’ Mohd Hishamudin Bin Mohd Yunus who delivered the decision also ordered the Defendants to pay costs to the SC.