A new controlling shareholder at Transit-Mixed Concrete is making a mandatory offer for the remaining shares of the company he does not yet own.
Lee Sai Sing, executive director of Maxi-Harvest Group, on Feb 19 bought over 71.36% of the company from existing shareholders at 14 cents per share, or $6.95 million.
Transit-Mixed Concrete last traded at 8 cents before a trading halt was called on Feb 18.
While Lee plans to maintain the company’s listing, he is obliged to make the same offer for the remaining shareholders. Lee has no plans to revise the offer price.
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The sellers were Kheng Leong Company (Private), a private investment vehicle of the Wee family who controls United Overseas Bank; Hee Geok Lin, acting in the capacity as the administrator of the estate of the late Chua Eng Him the company’s former CEO, and Yap Boh Lim, a former director of the company who retired last August.
Transit-Mixed Concrete was founded in 1979 and was listed since Nov 2009. It exited the mixed concrete business in 2019 and its main business activities are now in supplying concrete pumping services and waste management services.
The company has been loss-making for the past three financial years. It last made a profit of $1.9 million for FY2017 ended Feb 29 2017. For the most recent full year FY2020, it was $1.75 million in the red.
For the most recent six months ended Aug 31 2020, it incurred losses of $843,000, slightly lower than $869,000 booked in the year earlier. Revenue in the same period dropped 61% y-o-y to $1.64 million, as the circuit breaker halted construction activities.
