Arabica, Robusta and Liberica, the three coffee beans that form the secret Old Town White Coffee blend.
KUALA LUMPUR: Jacobs Douwe Egberts Holdings Asia NL. B.V.’s takeover offer for OldTown at RM3.18 per share is in line with Alliance DBS Research’s RM3.15 target price.
The research house said on Tuesday the target price for the group, which is pegged to 19 times CY18 price-to-earnings ratio (PER) or 21 times CY18 PE based on consensus estimates.
“We deem the offer to be reasonable and fair. We tilt our TP to RM3.18 to match the offer price. Maintain BUY and advocate investors to accept the offer once the preconditions are met,” it said.
On Monday, OldTown announced that the group has received a pre-conditional cash offer for all the issued ordinary shares of the company by Jacobs Douwe Egberts Holdings Asia NL. B.V., an indirect unit of Jacobs Douwe Egberts B.V. (JDE) at RM3.18 per share.
The offer will be subject to the preconditions of (1) green light obtained from the Competition Commission of Singapore and (2) the offer does not violate any other appropriate anti-trust authorisations.
The offer will not be made to shareholders of Oldtown until the preconditions have been satisfied latest by Aug 11, 2018.
JDE intends to privatise OldTown and will not maintain its listing status on Bursa Malaysia.
JDE is a global coffee & tea player, with market footprint in more than 120 countries through its iconic brands such as: Jacobs, Tassimo, Moccona, Senseo, L’OR, Douwe Egberts, Super and Kenco.
Further information of JDE could be found at its website.
The majority shareholders of OldTown, namely (1) Old Town International Sdn Bhd, (2) Mr Lee Siew Heng, and (3) Mawer Investment Management Ltd, which collectively hold about 51.5% in the group, have accepted the offer.
Limited time offer:
Just RM5 per month.
