KUALA LUMPUR, Feb 26 (Reuters) - Malaysia’s Hong Leong Financial Group, controlled by the country’s sixth richest man Quek Leng Chan, has failed to take its 79 percent-owned investment banking arm Hong Leong Capital Bhd private as shareholders hold out for a better offer.
Hong Leong Financial told the stock exchange late on Monday that it acquired only a 2.24 percent stake, or 5.5 million shares, during the offer period, bringing its total ownership in the investment bank to just 81.3 percent.
Hong Leong Capital’s shares have traded consistently above the 1.71 ringgit per share offer price since the deal was announced on Jan. 14. The stock last traded 35 percent above the offer price at 2.31 ringgit.
Hong Leong Financial needs to own 90 percent of the stock before it can make a mandatory general offer for the shares it does not own.
It will have to wait for six months before making a new offer, according to stock exchange regulations.
Reporting by Niluksi Koswanage; Editing by Richard Pullin