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Atlan seeks waiver from seeking shareholders’ nod for disposal

by March 29, 2016 General
DFZ Capital’s Zon duty-free retail outlets can be found in various locations in Peninsular Malaysia.

DFZ Capital’s Zon duty-free retail outlets can be found in various locations in Peninsular Malaysia.

KUALA LUMPUR: Atlan Holdings Bhd (AHB) wants a waiver from seeking its shareholders’ approval for its subsidiary’s disposal of up to 25% equity interest of DFZ Capital Bhd, one of the country’s biggest duty free retailing groups.

In a filing with Bursa Malaysia on Tuesday, AHB said this was in view that the said subsidiary Duty Free International Ltd (DFIL), a company listed on the Singapore Exchange’s Catalist Board, would convene a general meeting to seek the approval of its shareholders.

The highest percentage ratio applicable to the proposed disposal is up to 47.70%, which was computed based on the assumption that the call options granted to the buyer are fully exercised.

This requires AHB, under Paragraph 10.07 of the Listing Requirements, to issue a circular to its shareholders and seek their approval for the proposed disposal at a general meeting.

AHB said it had submitted an application to Bursa Malaysia Securities on Tuesday in connection with the proposed exemption.

To recap, DFIL had on March 17 entered into an agreement to dispose of 10% equity interest in DFZ Capital plus one ordinary share of RM1 each in DFZ to Heinemann Asia Pacific Pte Ltd for 19.7 million euros (RM88.08mil) in cash.

DFIL has also granted Heinemann call options (second and third tranche call options) to buy up to 15% additional stake within a total period of 30 months. Assuming that Heinemann acquires an additional 15% equity interest in DFZ pursuant to the exercise of the third tranche call option, the proceeds from the proposed disposal will be up to 52.21 million euros (RM233.58mil).

DFZ Capital has duty-free retail outlets, duty-free wholesale outlets and duty-paid retail outlets at various locations throughout Peninsular Malaysia such as Padang Besar, Langkawi, Bukit Kayu Hitam, KL International Airport and Johor Baru.

Besides duty free and non-dutiable merchandise trading, AHB is also involved in property investment, hospitality and manufacturing businesses.

* To read Atlan’s earlier announcement on the proposed disposal, click here