Amin's move could prompt TNB to boost offer for Integrax, RHB Research

PETALING JAYA: Integrax Bhd's co-founder Amin Halim Rasip offer to take 5% off Perak Corporation Bhd's stake in the port operator could prompt Tenaga Nasional Bhd (TNB) to raise its offer price further by at least 7.7% more to match Amin's offer of RM3.50 per share.
RHB Research analyst Ahmad Maghfur Usman said Amin's latest action has made the deal even trickier to go through for TNB and recommended PCB's minority shareholders to accept the latest offer.
"For minority shareholders with a shorter term view, we recommend accepting the offer because our take on this is that, if the takeover attempt by TNB fails, Integrax's share price could retrace back.
"Furthermore, the gestation period to justify a high fair value on the stock at the offer price will take time to build. This is because we foresee Integrax's earnings taking a dip in FY15 on an expected drop in revenue, given that the fixed facility revenue stream of approximately RM36 million annually expired in FY14," he said.
From a trading perspective, Ahmad Magfur observed that both TNB and Amin are buying shares in the open market at the highest price, likely with the aim of securing a higher chance for their respective objectives.
"We maintain our neutral stance on the stock at the RM3.25 offer price (2% upside) and recommend minorities to accept the offer," he said.
On Wednesday, Amin made an exclusive RM3.50 per share offer for 5% of PCB's stake in Integrax in what appears to be a move to block the acquisition attempt by TNB.
PCB Corp currently holds a 15.74% stake in Integrax and has made an indication that it will likely accept TNB's RM3.25 per share offer, which is to be decided at the EGM on Mar 27.
Should PCB accept Amin's offer for the 5% stake, the former will be required to retain ownership of its remaining 10.74% for at least three years.
In the event that PCB seeks to sell its stake (all or partial) within that time frame, Amin - the offerer - will be given the first rights of refusal to purchase those shares.
Amin's offer, if accepted will see him increase his stake in Integrax from 24.55% to 29.55%, is valid until April 18.