TA Enterprise shareholders told to reject take over offer

PETALING JAYA: TA Enterprise Bhd's independent adviser BDO Capital Consultants Sdn Bhd has advised shareholders to reject the mandatory take over offer by co-founder and chairman Datuk Tiah Thee Kian at 66 sen per share as it is "not fair" and "not reasonable".
"BDO viewed that the offer is not fair in view that the offer price of 66 sen is lower than and represents a significant discount of RM1.93 to RM1.94 or 74.5% to 74.6% to the estimated fair value per offer share of RM2.59 to RM2.60," it said in its independent advice circular today.
It also viewed that the offer is not reasonable, as the shares will remain tradable on the Main Market of Bursa Securities and considering the liquidity of the shares, holders who hold small blocks of shares may still have opportunity to dispose their shares in the open market subsequent to the closing date.
It said the offeror does not intend to invoke the provisions of Section 222(1) of the Capital Markets and Services Act, 2007 to compulsorily acquire any outstanding offer shares for which valid acceptances have not been received prior to the closing date.
Tiah has been accumulating shares in the market to further strengthen his grip on TA Enterprise.
At the noon break, the stock was unchanged at 66 sen on 27.88 million shares done.