KUALA LUMPUR (Oct 4): Mieco Chipboard Bhd has received a mandatory unconditional offer from SYF Resources Bhd's chairman cum chief executive officer Datuk Seri Ng Ah Chai, at 90 sen a share for the remaining 43.24% of the particleboard maker's shares he does not own.

The stake represents some 90.81 million shares, according to the notice of the unconditional takeover offer from RHB Investment Bank Bhd — sent on behalf of Ng — that was received by Mieco today.

The offer then will be open for 21 days and came after the conditional share sale agreement Ng inked with BRDB Developments Sdn Bhd to acquire a 56.76% stake in the company for RM107.27 million — or 90 sen a share — turned unconditional today, with Ng's stake in Mieco now at 56.76%.

If Ng, who is also a major shareholder in SYF with a 51.51% stake, decides to revise the offer price, there will be a 14-day extension to the offer period, beginning from the day the revision is made.

Since the takeover offer is not conditional upon any minimum level of acceptance, Ng can stretch the closing date to a maximum of 60 days from today, upon receiving Securities Commission Malaysia's approval.

Ng intends to maintain Mieco's listed status. He, however, would have to compulsorily acquire the shares he does not own in case 90% of the 90.81 million Mieco shares currently not in his hands are sold to him during the takeover period.

Bloomberg data showed Mieco's counter averaged at 93.6 sen this past year, and closed as high as RM1.30. It bottomed out at 81 sen within this period.

The filing said Ng's offer of 90 sen represented a premium of between 2.3% and 7.1% to the volume-weighted average price (VWAP) of up to three months ended June 29, i.e. the day before Ng bought the 56.76% stake in Mieco.

But the price tag is at a discount to the VWAP for the six months before June 29 of 92 sen, the VWAP for the 12-month period of 97 sen.

Mieco shares ended trading at 90 sen today, valuing it at RM189 million.