Takeover offer for OldTown fair and reasonable

PETALING JAYA: The RM1.47 billion takeover offer from Jacobs Douwe Egberts Holdings Asia NL. B.V. (JDE) for OldTown Bhd is fair and reasonable, said AmInvestment Bank Bhd.
In its independent advice letter, AmInvestment Bank recommended OldTown shareholders to accept the offer from the Dutch coffee company.
It said the offer price of RM3.18 is fair as it represents a premium of 27 sen to 54 sen (9.3% to 20.5%) to the ascribed valuation range of RM2.64 to RM2.91 per OldTown share.
AmInvestment Bank also noted that the offer is reasonable as OldTown shares have never traded above the offer price for the past three years, except for a brief period in May 2017.
The offer price represents a premium ranging from 30 sen to 55 sen (10.4% to 20.9%) over its volume weighted average prices for the one-day, five-day, three-month and six-month period.
OldTown received a takeover notice from JDE in December last year and the offer will be open for acceptance until March 13. JDE does not intend to maintain the listing status of Oldtown.
Oldtown's share price closed unchanged at RM3.16 with a total of 239,100 shares traded.