Wing Tai Malaysia joint offerors extend closing date for RM1.80 a share offer

PETALING JAYA: Majority shareholders of Wing Tai Malaysia Bhd, Wing Tai Holdings Ltd and Wing Tai Investment & Development Pte Ltd, have extended their offer for the shares they do not own in Wing Tai Malaysia up to July 18.
In a filing with Bursa Malaysia earlier, the two companies said the 4th of July closing date has been moved back to July 18 to allow for more acceptances.
Thus far, its offer of RM1.80 a share has garnered 25.95% of voting shares, of this 4.02% of the voting shares are subject to verification. This brings the total number of voting shares secured by the joint offerors up to 92.08%.
The offerors do not intend to maintain the listing status of the company and has no plans to address the shortfall in public shareholding spread brought about by the offer. As at June 30, 2017, the public shareholding spread stands at 11.94%.
Independent adviser Mercury Securities Sdn Bhd called the offer " not fair but reasonable" and advised shareholders to accept it.
Mercury Securities said the offer price represents a discount of between 49.3% and 49.86%, or between RM1.75 and RM1.79, from its estimated fair value range of between RM3.55 and RM3.59. It deemed it reasonable however, due to the illiquid nature of the shares.
Wing Tai Malaysia is currently trading at the offer price, as the joint offerors tap the market for shares.