Takeover offer for Petaling Tin not fair but reasonable: InterPac

PETALING JAYA: Independent adviser Inter-Pacific Securities Bhd views the takeover offer for Petaling Tin Bhd as “not fair” but “reasonable”.
Petaling Tin shareholders are advised to accept the offer as the offeror already holds about 90.002% and there is no intention to take any steps to address the shortfall in the public shareholding spread, which will lead to trading suspension by Bursa Malaysia immediately upon the expiry of five market days from the closing date.
Last month, Petaling Tin’s largest shareholder Tan Sri Chen Lip Keong launched a takeover offer for RM13.83 million or 40 sen per share.
Inter-Pacific opined that the offer price is not fair, as it represents a discount of 65 sen to 66 sen or about 61.9% to 62.26% to its revalued net asset value range of RM1.05 to RM1.06.
The offer however, is reasonable given that the offer price represents a premium ranging from 3.1 sen to 10.7 sen or about 8.4% to 36.52% over the last traded market price and the five-day, one-month, three-month, six-month and 12-month volume weighted average prices of up to May 30.
It is also noted that its market prices have not closed above the offer price for the past three years.
The offeror does not intend to maintain Petaling Tin’s listing status on the Main Market of Bursa Securities. The offer will be closed at 5pm on July 12.
Petaling Tin’s share price closed unchanged at 39.5 sen with 317,900 shares changing hands.