KUALA LUMPUR (May 16): Snacks and confectionery maker Oriental Food Industries Holdings Bhd announced that it has acquired an additional 100,000 shares, equivalent to 10% of the issued and paid-up capital, in its property development subsidiary OFI Properties Sdn Bhd, for RM500,000.
The shares were acquired from Yeo Kian Chuan, following a consent order that he had signed with OFI Properties, Oriental Food Industries, Datuk Seri Son Chen Chuan, Datuk Son Tong Eng and Datuk Son Tong.
Oriental Food Industries said the price that it has paid to purchase Yeo’s block of shares was “reasonable” considering OFI Properties’ net tangible assets that stood at RM6.49 million as at end-April.
“The acquisition of OFI Properties is not expected to have any material effect on the earnings per share and net tangible assets of the company and Oriental Food Industries for the current financial year,” the snacks and confectionery maker said in a filing with Bursa Malaysia.
Upon completion, Oriental Food Industries will tighten its grip in OFI Properties, with a 99.99% stakes, while the balance one share will be owned by Chen Chuan.
Oriental Food Industries signed a consent order to a settle a winding-up petition that Yeo had on Dec 22, 2016, filed with Kuala Lumpur High Court and served to OFI Properties, Chen Chuan, Tong Leong and Tong Eng.
The petition was filed under Section 218(1)(f) of Companies Act 1965, which allows for a company to be wound-up if the directors have acted in their own interests rather than in the interest of its members as a whole, or in any manner that appears to be unfair or unjust to other members.
Shares in Oriental Food Industries ended three sen or 1.9% higher at RM1.61 today, for a market capitalisation RM386.4 million.
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