MYEG - triggering MGO

Its major shareholders would have increased their stakes in the e-government service provider to a level close to triggering MGO, had it not been for the 10.81 million treasury shares retained in its books from a recent share buyback.

MYEG’s MD Wong Thean Soon and executive director Datuk Raja Munir Shah Raja Mustapha via Asia Internet Holdings Sdn Bhd acquired a 8.5 million shares, representing 1.44% of the company, for rm24.23 million or rm2.85 a piece.

The transaction, a block of shares in married off market deal, increased AIHSB’s stake in MYEG from 31.2% to 32.66% close to triggering an MGO to buy the remaining shares in the company.

Wong and Munir, who have deemed interest in MYEG saw their direct interest jump from 32.1% to 33.57%.

The percentage of direct and indirect interest excludes the 10.81 million ordinary shares bought back by the company, and retained as treasury shares.

An MGO will be triggered when the 33% shareholding threshold is breached. Hence, an acquisition of an additional stake of 0.34% by AIHSB would see Wong and Munir propose a GO.