Takeover offer for GSB fair and reasonable: Adviser

PETALING JAYA: Independent adviser Inter-Pacific Securities Sdn Bhd views Javawana Sdn Bhd takeover offer for GSB Bhd as fair and reasonable, and advised shareholders to accept the offer.

In its independent advice circular, Inter-Pacific said the offer price of 13 sen per share is fair as it represents a premium of one sen or about 8.33% to its revalued net asset value of 12 sen per share.

The offer is also considered reasonable as it represents a premium ranging from 1.26 sen to 2.45 sen or about 10.73% to 23.22% over the last traded market price as at May 17 and the five-day, one-month, three-month, six-month and 12-month volume weighted average price of GSB shares.

Recall that Javawana Sdn Bhd had in May launched a mandatory general offer for GSB after its shareholding increased to 40.71% following the acquisition of 24.05% equity interest. The offer will remain open for acceptance until 5pm on June 29.

After careful examination of the terms and conditions of the offer, the non-interested directors concur with the evaluation and recommendation that the offer is fair and reasonable. Accordingly, the non-interested directors recommend that the holders accept the offer.

The offeror intends to maintain the listing status of GSB.

GSB closed 1 sen or 4.5% lower at 21 sen today on 14.34 million shares done.