KUALA LUMPUR (Dec 10): QL Resources Bhd has failed in its takeover bid for smaller rival Lay Hong Bhd after it did not receive valid acceptances from the latter's shareholders to meet the required 50% of all outstanding shares with voting rights.

“Accordingly, the offeror (QL) shall return all the Lay Hong shares which have been transferred into the Central Depository System (CDS) account of the offeror to the respective holders who have accepted the offer within 14 days of the closing date,” said QL in a filing with Bursa Malaysia today.

As at the closing date today, QL holds 20.22 million shares or 39.92% in Lay Hong. Another 10,800 shares or 0.02% are pending verification.

To recap, QL launched a conditional general offer for Lay Hong shares at RM3.50 per share in September this year after its sole representative on Lay Hong’s board, Chia Mak Hooi, was not re-elected as a director at Lay Hong’s annual general meeting two days prior to that. At the time, QL held a 26.81% stake in Lay Hong.

Later, QL started to accumulate Lay Hong shares and eventually exceeded the 33% shareholding threshold, thereby turning QL’s takeover offer from a voluntary one to a mandatory one.

Lay Hong’s share price closed at RM3.45 today, up 2 sen. Its share price has performed impressively this year and has gained 146.43% year-to-date. It reached a year-to-date high of RM3.60 on Sept 25, the day after QL made known its intentions to takeover Lay Hong.

Meanwhile, QL saw its share price closed up 6 sen at RM3.31. This gives it a market capitalisation of RM4.13 billion. Year-to-date, QL’s share price has gained 16.51%.