KUALA LUMPUR, Nov 24 — A lawsuit could put brakes on a bid by the main shareholders connected to tycoon Tan Sri Syed Mokhtar Al-Bukhary to take over and privatise the profit-making Padiberas Nasional Bhd (Bernas), The Edge has reported.

According to the financial news weekly, minority shareholder Ilustrasi Hikmat Holdings Sdn Bhd (IHSB) had filed the case in April, disputing Syed Mokhtar and his companies’ right to take over ownership of Bernas.

IHSB, which held 3.53 million shares in Bernas as of May this year, is saying that the company cannot be controlled and owned by a single person.

The minority shareholder is basing its claims on contracts signed between Putrajaya and other stakeholders when rice industry regulator National Padi and Rice Board (LPN) was turned into a corporation, with Bernas assuming LPN’s role as regulator in 1996.

Bernas was recently thrown into the spotlight as MPs, including Opposition Leader Datuk Seri Anwar Ibrahim raised doubts over the proposed takeover of the rice company by Syed Mokhtar-controlled firms.

Earlier this month, Bernas proposed a voluntary withdrawal from Bursa Malaysia after it failed to get 90 per cent acceptance support from shareholders to privatise the company.

In an exchange filing on November 6, the company said the joint offerers and parties acting in concert to take it private had only managed to obtain 83.69 per cent shareholders’ support as of November 4, 2013.

This means that the company does not comply with Bursa’s listing requirements of having at least 25 per cent public shareholding spread.

Syed Mokthar, who holds the controlling stake, is trying to take Bernas private using his four companies — Perspective Lane Sdn Bhd, Kelana Venture Sdn Bhd, Seaport Terminal (Johor) Sdn Bhd and Acara Kreatif Sdn Bhd — who are the joint offerors.

Following the failure of the privatisation bid earlier this month, Bernas’s shareholders will decide on the proposed voluntary delisting from Bursa in an extraordinary general meeting.

The Edge reported that three minority shareholders in Bernas - Batu Bara Resources Corp Snd Bhd (4.8 per cent), the National Farmers Organization (3.71 per cent) and the National Fishermen’s Association (3.42 per cent) — will be key to Syed Mokhtar and his nominees’ bid to take over the rice producer.

In March, Syed Mokhtar’s initial bid to take the rice distributor private failed as the tycoon was unable to receive sufficient shares acceptance from the minority shareholders.

The bulk of Bernas shares is controlled by Syed Mokhtar through Tradewinds (M) Bhd (72.7 per cent of Bernas shares), which he privatised in March this year.

The privatisation of Tradewinds triggered a mandatory general offer for Bernas and Tradewind Plantations Bhd.

Now Tradewinds directly owns nearly 72.6 per cent in Bernas, while his private companies Perspective Lane has 10.8 per cent, Restu Jernih Sdn Bhd has indirect shares of 83.3 per cent and Syed Mokhtar holds 392.1 million shares.

The cash-rich Bernas has RM612.67 million in the bank as of September 30, which is double the RM398.6 million it held in January this year, The Edge reported.

On April 26, 2011, the government has announced that Bernas’ exclusive contract of rice distribution has been extended for 10 years starting from January 11, 2011 to January 10, 2021.

Bernas currently controls 24 per cent of the paddy market and 45 per cent of the local rice demand.