PETALING JAYA: Engineering firm Emas Kiara Industries Bhd's deputy executive chairman Wong Kong Foo, together with persons acting in concert (PACs), have extended their offer for shares they do not own in the company to May 10 from today.
A stock exchange filing by Kenanga Investment Bank Bhd on behalf of the offerors said shareholders had until 5pm on May 10 to consider accepting the offer.
“Save for the extended closing date, all other details, terms and conditions of the offer remain unchanged,” the investment bank said.
Independent adviser HwangDBS Investment Bank Bhd deemed the 45 sen offer price as “not fair” and “not reasonable”.
It said in a circular to shareholders that the offer price of 45 sen represented a discount of 35.71% and 38.36% to the range of equity valuation of Emas Kiara of 70 sen and 73 sen based on the discounted dividend valuation.
Although the offer price of 45 sen was at a premium to its market price over the past 12 months, HwangDBS said it was also at a discount to the company's net asset per share and net cash per share of 93 sen and 57 sen, respectively, based on the latest unaudited consolidated financial statements for the financial year ended Dec 31, 2012.
“The offer is not reasonable, particularly given the favourable outlook and prospects of the Malaysian economy, construction industry and the company,” it added.
As at 2012, Emas Kiara had a net cash and cash equivalent position of RM50.9mil.
The company has a history of making dividend payments, including the special dividend payment of 12 sen for 2012.
Earlier in March, Wong had made a takeover offer to acquire the remaining shares in Emas Kiara that he did not already own for 45 sen per share.
Wong together with the PACs had held a combined 48.77% stake, equivalent to 43.52 million shares.
Subsequently, as at April 19, Wong and the PACs received a 2.09% acceptance, bringing their total stake to 50.86%.
The counter closed one sen lower to 45 sen with 1,100 shares done.
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