Adviser says takeover offer for Wong Engineering ‘not fair, not reasonable’

PETALING JAYA: Independent adviser Inter-Pacific Securities Sdn Bhd deems the takeover offer of 65 sen per share for Wong Engineering Corp Bhd (WECB) as “not fair” and “not reasonable”.
Accordingly, shareholders of WECB are advised to reject the offer from TNTT Realty Sdn Bhd and persons acting in concert.
In an independent advice circular filed with the stock exchange last Friday, Inter-Pacific Securities said as the offer price represents a discount of 5 sen or 7.14% to the revalued net asset value of 70 sen, thus it is deemed “not fair”.
Inter-Pacific is also of the view that the offer is “not reasonable” considering the offeror intends to maintain the listing status of WECB.
“Therefore, WECB shares will remain traded on Bursa Securities and, hence, the holders will still have the opportunity to realise their investments in WECB shares in the open market after the closing date,” it said.
Besides that, after the change in controlling shareholders pursuant to the share acquisition and the date of the notice, the trading volume in WECB shares has increased significantly.
“With the increase in trading liquidity, holders would have the opportunity to dispose of their WECB shares in the open market if they do not wish to accept the offer,” Inter-Pacific noted.
The high-precision components maker had in August received an unconditional mandatory offer from TNTT Realty and persons acting in concert to acquire all its remaining shares for 65 sen, valuing the company at RM59.5 million.
TNTT is a major shareholder of Tiong Nam Logistics Holdings Bhd and is controlled by the latter’s major shareholder and managing director, Ong Yoong Nyock.