Hovid shareholders advised to accept offer

PETALING JAYA: Hovid Bhd’s shareholders are advised to accept the takeover offer, the second bid by managing director David Ho Sue San and Fajar Astoria Sdn Bhd to take the group private.
In a circular issued today, AmInvestment Bank Bhd said the offer is “fair” on the premise that the offer price of 38 sen is 6 sen or 18.8% higher than its ascribed equity value of 32 sen per share.
It is also of the view that the offer is “reasonable” as Hovid shares had not traded above the offer price from Oct 6, 2016 to Sept 13.
In addition, the offer price represents a premium ranging from 5.6% to 16.9% over the closing market price as at Sept 13, as well as the five-day, one-month, three-month, six-month and one-year volume weighted average prices up to Sept 13.
The offer will remain open for acceptances until 5pm on Dec 4.
Recall that early this year, Hovid’s privatisation plan fell through as it could not get full support from the shareholders.

Last month, a fresh takeover offer was made with the same offer price of 38 sen per share.