KUALA LUMPUR: Tenaga Nasional Bhd’s conditional offer for Integrax Bhd was rebuffed by the latter’s original founding shareholder, Amin Halim Rasip, who described the RM2.75 a share as “not fair and not reasonable”.
In a statement to the Press on Friday, Amin – who has a 22.81% stake in Integrax – said Tenaga’s offer was “not reflecting the value of Integrax”.
“I wish to inform all other shareholders that I will not be selling and not accepting the Tenaga offer of RM2.75 per share for Integrax,” he said, adding his views are solely , separately and independently on his own.
I , Amin Halim Rasip make this statement solely in my capacity as a shareholder , with a 22.81% deemed interest in Integrax Berhad .
As one of the original founding shareholders and as a duty to other shareholders due to being swamped with a very large number of queries I have received from amongst other more than 2300 public shareholders of Integrax Berhad.
I wish to inform all other shareholders that I will not be selling and not accepting the TNB offer of RM2.75 per share for Integrax Berhad , as the TNB offer price is not fair and not reasonable and not reflecting the value of Integrax Berhad.
My views are solely , separately and independently my own and shall not be construed in any way as representing the views and opinions of any others including the Board of Directors or management of Integrax Berhad or any other parties .
Shareholders must realise and recognize that we are part owners of a set of port assets ( LBT: Lekir Bulk Terminal and LMT: Lumut Maritime Terminal ) that have a very high enterprise and strategic value , arising from the fact that LBT is one of only a few ports world wide ,with deep water access and located on a trade artery of the world between China and the rest , and with a hinterland consisting of Perak , Kelantan and Terengganu and indeed all of Sumatra.
A review of information already in the public domain shows that our company has been consistent as a strong cash generator with consistent cargo throughput , consistently performing operations and with very significant cash holdings in hand .
The high capacity and capability of our port assets still have excess capacity available for other users and opportunities that are already before us , with cargo stockyard land available in the terminal for future expansion . Our LBT land assets have approx. 80 year lease remaining and our equipment is built to high standards and last a long time.
Furthermore our assets have not been revalued since construction and commencement 15 years ago and the reality is that the replacement cost for such port assets with equivalent capability is huge in excess of RM1.0 billion , significantly higher than the original 2000 cost .
Value will be naturally flow from our strategically located terminal infrastructure set to grow with local , regional and global opportunities before us providing immense growth opportunity also noting as a business we are insulated and not sensitive to commodity price movements as commodities like coal still have to flow irrespective of commodity prices .
Our port assets have a long proven track record as a catalyst in the growth of Perak's resource and industrial base , employment generation and investment , and it is therefore strategic to the interest of Perak going forward for the port assets to continue as a multi user foundation base focusing on its customer base to stimulate Perak's development and industrial user base and economy going forward.
LBT also has along term proven track record in the provision of coal handling services to existing TNB coal fired power plants over the past 15 years and has the excess capacity available for TNB future power plants.
LBT expansion capability already known to TNB will significantly enhance coal storage and handling and with capacity to triple the amount of coal LBT is able handled.
New coal standards that have been implement in China and the trend in power stations for lower ash coals opens a significant opportunity for LBT to tap regional coal cargo throughput that will arise from such new standards.
By logical deduction one assumes that there is a realization by TNB that the LBT facilities and LBT expansion will enhance handling and storage are very likely to be used extensively and hence it better to own the asset now rather than later. At RM2.75/share it would be a very inexpensive acquisition by TNB.
As shareholders we need to ensure full utilization and value building of our port assets and move to enhance minority shareholder benefits through consistent and strong dividends and going forward increase market liquidity through use of warrants and other instruments.
Thank you & Regards,