PETALING JAYA: The takeover offer for Chin Hin Group Bhd is deemed not fair and not reasonable, hence its shareholders are advised to reject the offer.
Independent adviser Interpacific Securities Sdn Bhd said in a circular that the offer is considered not fair as the offer of 30 sen a share represents a discount of 24 sen to 25 sen, or about 44.44% to 45.45% to the range of revalued net asset value of 54 sen to 55 sen per share.
At the same time, the offer of 10 sen per warrant represents a discount of 6 sen or 37.5% over the theoretical value of the warrants of 16 sen.
“We are of the view that the offer is not reasonable after having considered that the offeror intends to maintain Chin Hin’s listing status...there is no assurance that the market price of the offer securities will continue to trade at current price levels after the closing date,” it said.
The mandatory takeover offer was triggered after Divine, a wholly owned subsidiary of PP Chin Hin Realty Sdn Bhd, acquired a 1.69% stake in Chin Hin in the open market for 30 sen per share.
On the same day, Chin Hin founder and chairman Datuk Seri Chiau Beng Teik also bought a 4.51% stake via direct business transaction from Ong Choo Meng and Hextar Holdings Sdn Bhd.
Beng Teik, his son Chiau Haw Choon and wife Datin Seri Wong Mee Leng are the controlling shareholders of Divine.
With the completion of the acquisitions, the joint offerors’ stake in Chin Hin increased to 37.59% from 31.39%.
The joint offerors intend to maintain the listing status of Chin Hin.
