KUALA LUMPUR: Oversea Enterprise Bhd's (OEB) share price hit limit up today on news that Anzo Holdings Bhd managing director Datuk Eddie Chai Woon Chet is buying a 62.37 per cent stake in the Chinese restaurant operator for RM45.38 million.
The counter surged 30 sen to its all-time high of 61.5 sen, which was about 95 per cent more than the offer price of 30 sen by Chai.
Some 17.97 million shares were traded, giving OEB a market capitalisation of RM151.6 million.
OEB told Bursa Malaysia yesterday that it had received an unconditional mandatory takeover offer (MTO) from Chai, who is a substantial shareholder of Anzo and director of M3 Technologies (Asia) Bhd.
Chai also owns shares in XOX Bhd, which is focusing on fifth-generation (5G) wireless mobile network development in Malaysia
He is buying 151.3 million shares in OEB at 30 sen apiece from its substantial shareholders and had entered into a sale and purchase of shares agreement with them.
They are Yu Soo Chye @ Yee Soo Chye, Yu Tack Tein, Simple Angel Capital Sdn Bhd, Lee Lim & Sons Sdn Bhd and Khong Yik Kam.
The offer price of 30 sen apiece represents a slight discount of 4.76 per cent to OEB's closing market price on August 5.
The last trading day prior to the serving of the offer notice was 31.5 sen.
OEB operates in three segments - restaurant, where it owns and operates five Chinese outlets under the name Oversea; manufacturing and wholesale of baked products like mooncakes; and investment holding.
For fiscal year 2020, OEB recorded revenue of RM51.79 million, a 6.2 per cent decrease as compared to RM55.21 million in the same period a year ago.
Pre-tax loss expanded to RM4.68 million from RM3.84 million a year ago.
Chai told the New Straits Times (NST) yesterday that he was buying a major stake in OEB to ride on the potential growth of the Chinese restaurant business in Malaysia.
He, however, was tight lipped when asked if he will increase the number of Oversea outlets in Malaysia, or whether he would inject new food-related business to turnaround the group.
Chai clarified today that he had extended the offer to OEB in his personal capacity
"I am buying the shares in OEB as an investor," he told NST.
Meanwhile, shares of XOX also surged four sen to touch 31 sen in afternoon trade today.
The stock closed two sen higher at 29 sen, with 813.85 million shares traded.
In a filing with Bursa Malaysia today, XOX said that Chai had acquired 4.1 million shares in XOX to raise his stake to 5.35 per cent.
Hong Kong investor Daniel Tam, linked to Hong Kong business magnate Li Ka-Shing, also acquired 30 million shares in XOX today, increasing his stake in the company to 8.06 per cent.
Tam is a shareholder and director of a large conglomerate listed in Hong Kong, in which Ka-Shing, one of the most influential businessmen in Asia, holds a substantial stake.
Besides the 5G plan, XOX has partnered with Wetek Technology (M) Sdn Bhd, which has a money-lending licence for micro-financing in Malaysia, to provide micro-financing to the tune of RM1 billion to its 2.2 million subscribers.
XOX and Wetek are also working together to provide about RM2 billion financing to entrepreneurs and small business owners in Southeast Asia.