Per rule 14 of the takeover code, where a mandatory offer is triggered when an offeror acquires 30% or more of the shares in a company, Patec is required to make a mandatory conditional cash offer for all the shares it does not already own in Broadway Industrial Group.
Broadway Industrial Group’s substantial shareholder, Lau Leok Yee, and non-independent non-executive chairman Lew Syn Pau, have agreed to sell their collective stake of 196,964,849 shares in the company to Patec Pte Limited for 19.7 cents apiece on Oct 28. The stake amounts to 43.32% of Broadway Industrial Group’s total stake.
Patec Pte Ltd is wholly-owned by Patec Precision Industry (Patec Taiwan), which is listed on the Taiwan Stock Exchange. Patec provides engineering solutions to the metal-forming industry and it has two business units, mainly engineering solutions and components manufacturing.
