Reject take over offer, Rex Industry shareholders told

PETALING JAYA: Independent adviser MainStreet Advisers Sdn Bhd deems the takeover offer for Rex Industry Bhd by its directors Darmendran Kunaretnam and Chee Cheng Chun at RM1.65 per share as “reasonable but not fair”.
Thus, the independent adviser recommends the shareholders to reject the takeover offer.
In an independent advice circular filed with the stock exchange, MainStreet Advisers said the “not fair” view outweighs the “reasonable” view as the offer price represents a substantial discount of 35.29% to the estimated revalued net asset valuation (RNAV) per Rex share of RM2.55 as at Dec 31, 2016.
However, it said the shareholders who wish to exit their investments in the group can also consider selling the shares in the open market if they are able to obtain a price higher than the offer price, net of transaction cost.