Vestland’s Mandatory Takeover Offer Closes With Just 0.01% Acceptance

KUALA LUMPUR (Nov 11) — The mandatory general offer (MGO) for Vestland Bhd has ended with an extremely low acceptance rate, despite being launched by the company’s three largest shareholders who collectively control more than 70% of the construction group.

According to a press notice, the 34 sen per share offer garnered only 69,200 shares, equivalent to 0.01% of Vestland’s issued shares, by the time it closed on Tuesday. The offer was priced at a discount to the company’s prevailing market price, contributing to the muted response from minority shareholders.

Offerors Already Held Over 70% Stake Before MGO

The MGO was initiated by:

• Datuk Liew Foo Heen – Managing director and largest shareholder (34%)

• Datuk Soo Sze Ching – Second-largest shareholder (33.2%), mainly through Noble Pinnacle (Holding) Sdn Bhd (NPH)

• Wong Sai Kit – Executive director (3.72%)

The trio had previously entered into a shareholders’ agreement to govern their rights, obligations and the wider management of Vestland. This move triggered the mandatory takeover offer under capital market regulations.

As part of the agreement, Liew and Wong sold 30.69 million shares, representing a 3.25% stake, to NPH for RM10.43 million, or 34 sen per share. NPH became a substantial shareholder in late 2024 after acquiring a 29.8% stake through an off-market deal.

Despite the MGO, the trio stated they intend to maintain Vestland’s listing status, signalling that the offer was procedural rather than an attempt to privatise the company.

Market Reaction

Vestland’s share price slipped 0.5 sen to 43.5 sen on Tuesday, valuing the group at RM406.11 million. The minimal acceptance reinforces investor confidence in holding onto Vestland shares at market value rather than selling at the discounted offer price.

Broader Market Context

Interest in the construction and property development space remains healthy, especially in regions undergoing rapid growth. This includes demand for:

• Industrial land in Selangor tied to expanding logistics corridors

• Factory sites in Puchong catering to SMEs and light industry

• Office space in Bukit Jalil near emerging business clusters

• Commercial property in KL popular with corporate investors

• Industrial property in the Subang area driven by manufacturing and warehousing needs

Vestland’s ongoing involvement in infrastructure and building projects positions the company within these active development zones, despite the limited reception to the latest MGO.