Hovid shareholders advised to accept takeover offer

PETALING JAYA: Independent adviser AmInvestment Bank deems the takeover offer for Hovid Bhd at 38 sen a share and 20 sen a warrant as “fair” and “reasonable”, advising shareholders to accept the offer.
In an independent advice circular filed with Bursa Malaysia, AmInvestment Bank said the offer is fair as the share offer price of 38 sen per share represents a premium of 35.7% to 58.3% to its equity value of 24 sen to 28 sen.
The warrant offer price of 20 sen per unit is 100% to 233.3% higher than its value range of 6 sen to 10 sen.
Meanwhile, the offer is considered reasonable as the share offer price represents a 13.7% to 21.6% premium to its five-day to one-year volume weighted average price. For the warrants, the premium ranges between 10.8% and 45%.
Last month, Fajar Astoria Sdn Bhd and Hovid Bhd managing director David Ho Sue San launched the takeover offer to take Hovid private for 38 sen a share and 20 sen a warrant.
The offer will remain open for acceptances until 5pm on Nov 20. Hovid’s share price was unchanged at 36.5 today, with some 750,400 shares changing hands.