The Tang family has launched a bid to take The Store Corp Bhd, which operates the country’s oldest existing supermarket and departmental store chain, private. The sign above is seen at its outlet in Seri Petaling, Kuala Lumpur.
KUALA LUMPUR: The Tang family’s mandatory takeover offer to buy The Store Corp Bhd (TSCB) shares at RM3.70 each is not fair but it is reasonable, said Mercury Securities Sdn Bhd, the independent adviser appointed by the board to guide the shareholders.
In the advice circular to shareholders, Mercury said the “reasonable” view, however, outweighed the “not fair” view as the offer price was above the trading prices of TSCB shares for virtually all (99%) of the market days from TSCB’s listing on March 3, 1994, to the last full trading day prior to the date of takeover notice (Nov 25).
This also takes into consideration the illiquidity of the TSCB shares, meaning that the offer provides an exit opportunity to the holders to realise their investment in the TSCB shares in cash at the offer price.
On why the offer price was not fair, Mercury said it represented a 46% discount over the estimated revalued net asset valuation (RNAV) of RM6.85 per TSCB share.
Nonetheless, the offer is reasonable based on the historical share price performance, the historical liquidity analysis and the absence of a competing takeover offer.
The advice circular from Mercury Securities was posted at the Bursa Malaysia website on Thursday, two days after the offer by TYS Consolidated Sdn Bhd -- owned by group managing director Tan Sri Tang Yeam Soon and his wife Puan Sri Khor Guik Lee -- turned unconditonal.
TYS revised its offer price from RM3.52 to RM3.70 on Friday last week and, as of Tuesday this week, gained control of 59.57% equity interest in TSCB with valid acceptances representing a 45.69% stake.
The offer for shares in the supermarket and department store operator will remain open until 5pm on Jan 10, 2017.
TSCB shares closed unchanged on Thursday at RM3.74 with 72,900 shares changing hands.
Limited time offer:
Just RM5 per month.
