Japan’s KITZ Corp buys big stake in Unimech at a premium

Tuesday, 03 Sep 2019

KUALA LUMPUR: Japanese valve maker KITZ Corp is buying a 25.1% stake in UNIMECH GROUP BHD from its major shareholders for RM61.9mil cash.

Shares in Unimech climbed 3 sen at RM1.44 on Tuesday before the deal was announced after the stock market closed.

The company, in a filing with Bursa Malaysia today, said KITZ has entered into a stock purchase agreement with Datuk Seri Lim Cheah Chooi and other shareholders to purchase a total of 37.55 million Unimech shares.

Lim will sell a portion of his holding amounting to 8.76 million shares, or 5.85% stake in the company. The transaction will reduce his current holding of 47.22 million Unimech shares, or 31.56%.

The company said as long as Lim remains a shareholder in Unimech, KITZ has given its undertaking “not to conduct any form of a general offer” without prior approval from Lim.

The deal valued Unimech at RM1.65 a share.