PETALING JAYA: Goldis Bhd, which made a takeover offer for IGB Corp Bhd, has secured undertakings of 48.29% of shareholders, which is below the 50% mark required to make the offer unconditional.
Last month, Goldis had launched a takeover offer for IGB at RM2.88 per share on the condition it gets at least 50% acceptance.
The company had then said it already directly owned a 31.11% stake in IGB, while the persons acting in concert (PACs) with it collectively had 20.49%. Put together, it was anticipated that Goldis should be able to raise the group’s shareholding in IGB to 51.15%.
However, as at Aug 18, which was the last market day for acceptances of the proposed offer, the aggregate shareholding of the PACs was about 229.31 million IGB shares, or 17.18% of the company.
“Taking into account the direct shareholdings of Goldis of approximately 31.11% and the undertakings of the PACs to accept the proposed offer, the collective shareholdings of Goldis and the PACs are approximately 48.29%,” Goldis told Bursa Malaysia.
When Goldis first proposed the exercise on July 17, it said the rationale was to increase its direct stake in IGB to more than 50%.
Upon completion of the proposed offer, Goldis would be able to increase its consolidated net assets and net profit attributable to the company accordingly.
When the deal was first announced, analysts said that Goldis’ offer of RM2.88 cash per IGB share substantially undervalued the assets of the property development and investment company.
The consensus view was that minority shareholders were unlikely to accept the offer, given the low premium. Goldis’ offer represented a premium of only four sen, or 1.41%, over the pre-suspension price of IGB shares of RM2.84.
While one research house described the offer as “unfair and unreasonable”, another analyst said it was not a “serious offer”.
PublicInvest Research has estimated IGB’s assets to be worth at least RM8bil, or RM5.85 per share, and this too is made on a conservative valuation.
It said that Goldis’ offer valued IGB’s equity at RM3.84bil, which was only 48% of the estimated revalued net asset value of RM8bil of IGB.
The principal activities of IGB are investment holding and property development. Through its subsidiaries, IGB is involved in activities such as property development, property investment, malls and hotel operations.
Some 53% of IGB’s revenue contribution comes from property investment, while 32% comes from hotel operations and 10% from property development.