KUALA LUMPUR: Arenga Pinnata Sdn Bhd, a subsidiary of private equity fund Creador II, saw a lacklustre take-up rate for its mandatory offer for Masterskill Education Group Bhd’s (MEGB) ordinary shares.
The offeror and parties acting in concert with it held an aggregate of 50.02% of total voting shares in the education outfit as at the initial closing date of the offer, March 20. That was also the date that the conditional voluntary offer turned into an unconditional mandatory offer with a revised closing date of April 6.
However, the percentage of acceptances received since March 20 barely stirred, rising from 0.53% to 1.88%, according to MEGB’s announcement to Bursa Malaysia on Monday, the closing date.
Minority shareholders seem to be heeding the advice of BDO Capital Consultants, the independent adviser of MEGB, which told them to reject the 60-sen offer price, saying it was “not fair and not reasonable.”
Based on the revised net asset valuation approach, BDO CC had estimated the MEGB shares’ fair value to range from 61.46 sen to 66.5 sen.
Masterskill closed unchanged at 60.5 sen on Monday.
Arenga Pinnata launched the takeover offer on Jan 12. The company and collaborator, SMRT HOLDINGS BHD, had on the same date bought a 7.7% stake and a 23% stake in MEGB, respectively, from MEGB executive chairman Siva Kumar M. Jeyapalan for 60 sen a share.
Arenga Pinnata has announced its intention to maintain MEGB’s listing status.