Willowglen is an integrated provider of customised systems used to monitor and control remote field equipment for oil and gas utilities, power utilities, sewerage and drainage utilities, water utilities, railroads and infrastructure monitoring/building monitoring. It derives 70%-75% of its revenue from Singapore and the rest from Malaysia.
KUALA LUMPUR: Willowglen MSC Bhd
minority shareholders have been advised to reject a takeover offer of 80 sen a share as it is below the fair value ranging from 92 sen to RM1.01.
The independent adviser Mecury Securities Bhd said on Tuesday the offer price was lower than and was at discount of 12 sen to 21 sen or 13.04% to 20.79% over the range of estimated fair value per share based on the discounted cashflow valuation method of 92 sen to RM1.01.
The offer price was also lower than the daily volume weighted average market price (VWAPs) of the Willowglen shares since Feb 13, 2017 up to the last practical date, which was a discount of 0.50% to 53.36% to the lowest (80.4 sen) and highest (RM1.71) daily VWAPs.
To recap,Willowglen is an integrated provider of customised systems used to monitor and control remote field equipment for oil and gas utilities, power utilities, sewerage and drainage utilities, water utilities, railroads and infrastructure monitoring / building monitoring.
It derives 70% to 75% of its revenue from Singapore and the rest from Malaysia.
The offeror, New Advent Sdn owns 55% of Willowglen after it acquired 22.9% from various vendors for RM44.61mil cash consideration or 80 sen per share on Sept 21.
The parties acting in concert in the takeover – Wong Ah Chiew and Simon Wong Chu Keong are deemed interested in the offer and have abstained from deliberations and making any recommendation in relation to the Offer.
Based on the recommendation of Mercury Securities, the non-interested directors, Alfian Mohamed Basir; Tan Jun; Wang Shi Tsang; and Au Chun Choong had concurred with the former's evaluation and recommendation that the offer is not fair and not reasonable.
“Accordingly, the board recommends that you reject the offer,” it said.
Limited time offer:
Just RM5 per month.
