Kuala Lumpur:Prosper Trading Sdn Bhd (PTSB) and its joint ultimate offerors are set to launch a conditional mandatory takeover offer for the remaining 52.34% stake in United Malacca Bhd (UMB). The offer is priced at RM6.10 per share and aims to fulfill a takeover obligation that has been pending since September 2024.

According to BERNAMA News Agency, this offer targets 109.80 million shares that are not already owned by the offeror, joint ultimate offerors, and persons acting in concert (PACs). The obligation originally arose on September 26, 2024, when the combined shareholdings of these entities in UMB increased to 33.70% from 32.63%, surpassing the mandatory offer threshold of 33% under takeover regulations.

The increase in shareholdings followed acquisitions made by Tee Kim Tee @ Tee Ching Tee, Prosper Capital Holdings Sdn Bhd, Mergeboom (M) Sdn Bhd, and Datin Seri Kalsom Ahmad. However, a mandatory takeover offer was not initiated immediately following the trigger event.

The oversight was discovered during a review of historical shareholdings associated with Prosper Trading's purchase of 28.18 million UMB shares, representing a 13.44% stake, from Great Eastern Life Assurance (Malaysia) Bhd on October 12, 2026. These shares were acquired at RM6.10 per share, totaling RM171.93 million.

Additionally, the offeror and joint ultimate offerors will introduce a cash compensation scheme for eligible shareholders who sold UMB shares between September 26, 2024, and October 9, 2026. Claimants may receive compensation for the difference between RM6.10 per share and their selling price if the shares were sold below the offer price and the claims meet the scheme's criteria.

The offer is contingent on receiving valid acceptances by the closing date, which must be at least 21 days from the offer posting date. These acceptances should increase the collective holdings of the offeror, joint ultimate offerors, and PACs to over 50% of UMB's voting shares or rights.