Dymon Asia-backed Takeover Offer For Malaysia-listed Yee Lee Turns Mandatory

Malaysia-listed Yee Lee Corporation Bhd, which received a voluntary takeover bid from its founder and other parties including Singapore-based Dymon Asia Private Equity, said the offer has now turned mandatory.

Langit Makmur, a special purpose unit of Dymon Asia Private Equity (SE Asia) Fund II and one of the joint offerors, acquired 463,000 shares or 0.24% stake from the open market, raising its stake in Yee Lee from 32.99 per cent to 33.23 per cent, triggering the move.

“As Langit Makmur’s shareholding has exceeded 33 per cent of the total issued shares of Yee Lee, Langit Makmur has triggered a mandatory take-over obligation in respect of Yee Lee under Section 218(2) of the Capital Markets And Services Act and Paragraph 4.01(a) of the Rules,” according to a regulatory filing on Wednesday.

“In view of the above, the present unconditional voluntary takeover offer has become an unconditional mandatory takeover offer in accordance with Note 14 to Paragraph 4.01 of the Rules,” Yee Lee said.

Founded in 1968, Yee Lee is engaged in the production and distribution of edible oil and has expanded into other food verticals as well as packaging, marketing and distribution of fast-moving consumer products, plantation and eco-tourism. It also owns a 29.8% stake in Spritzer Bhd, a listed bottled-water manufacturer in Malaysia.

Langit Makmur is a special-purpose unit set up by Dymon Asia PE to undertake the offer along with Yee Lee Organisation Bhd, the founder Lim A Heng @ Lim Kok Cheong and his family members.

This was the second attempt for the joint offerors to take Yee Lee private. The offer was made on May 12  to acquire the remaining 19.27 million shares or 10.06% stake in Yee Lee which they do not own at RM2.06 per share, lower than the first attempt.

The joint offerors first proposed to acquire 79.7 million shares, equivalent to a 41.59 per cent stake, they do not own in the firm at 2.33 ringgit apiece in April last year. The offer fell through after the joint offerors could not get enough acceptance.

Dymon Asia PE invests across Southeast Asia, focusing on the mid-market sector. The firm launched its maiden investment vehicle, Dymon Asia Private Equity (SE Asia) Fund, in 2012 with S$300 million in commitments from investors. Its second fund in 2017 secured $450 million in capital commitments.