Accept takeover offer, Goh Ban Huat shareholders advised

PETALING JAYA: Independent adviser Public Investment Bank Bhd deems the unconditional takeover offer of RM1.40 per share for Goh Ban Huat Bhd (GBH) as "fair and reasonable", advising minority shareholders to accept the offer.
Last month, GBH shareholders received an unconditional mandatory takeover offer from property developer Paragon Adventure Sdn Bhd to buy each share at RM1.40 apiece.
The takeover offer includes its warrants, which are priced at 40 sen a piece after having considered the exercise price of RM1 per warrant.
In an independent advice circular filed with the stock exchange today, Public Investment said the offer price represents a premium of up to 11 sen or 8.53% over the range of estimated fair value per GBH share, thus it is deemed as "fair".
Public Investment is also of the view that the offer is "reasonable", as it provides an exit opportunity to the shareholders to realise their investment in GBH in cash at the offer price.
It added that the warrants offer price is "fair" as it represents a premium ranging from 5.26% to 11.11% over the one-month, three-month, six-month and 12-month volume-weighted average market price (VWAMP) of the warrants up to the last trading day prior to the date of the notice.
However, the shareholders are advised to closely monitor the announcements made by the offeror and market price of GBH shares and warrants prior to the closing date before making decision as to whether to accept or reject the offer.
"We have not taken into consideration any specific investment objective, financial situation or particular need of any individual holder.
"We recommend that any holder who requires advice in relation to the offer in the context of their individual investment objectives, financial situation or particular needs, consult their respective stockbroker, bank manager, accountant, solicitor or other professional advisers," it said.
The takeover offer came after tycoon Tan Sri Robert Tan Hua Choon sold his 51% stake in the ceramic products company to Paragon Adventure for RM145.71 million.
Paragon Adventure is owned by Datuk Seri Edwin Tan with a 65% stake and Datuk Seri Godwin Tan with the remaining 35%.
GBH's share price was unchanged at RM1.41 as at 3.07pm.