Moody's outlook on the Korean banking system has been negative since May 2016.
KUALA LUMPUR: The independent adviser of Wang-Zheng Bhd
has advised minority shareholders to reject the takeover offer of RM1.14 per share from Hong Kong-listed Hengan International Group Co Ltd.
The adviser, Affin Hwang Investment Bank said the offer was “not fair and not reasonable”. Accordingly, it advised and recommend the holders to “reject” the offer.
“The offer price of RM1.14 per offer share is not fair, taking into account that it is lower than our estimated range of value of between RM1.16 and RM1.39 per Wang-Zheng share,” Affin said in its independent advice circular to Wang-Zheng’s shareholders.
It added that the offer price also represented a discount of 25.49% to the last traded price as at latest practicable date on July 3. The last traded price of Wang-Zheng shares as at the July 3 was RM1.53, which is higher than the offer price.
“Despite there being no other competing take-over offer for the offer shares, we are of the view that the Offer is not reasonable, taking into account the average monthly traded volume over free float of Wang-Zheng Shares has generally improved since February 2017 and Wang-Zheng Shares are relatively liquid,” Affin said.
It noted that the offeror intends to maintain the listing status of Wang-Zheng on the Main Market of Bursa Securities.
“Accordingly, as Wang-Zheng Shares are relatively liquid and will remain traded on the Main Market of Bursa Securities, holders will have the opportunity to realise their investments in the open market after the closing date (though there is no assurance that Wang-Zheng Shares will continue to trade at current price and volume levels after the closing date),” Affin said.
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