KUALA LUMPUR: Mercury Securities Sdn Bhd, the independent adviser to Halex Holdings Bhd's minority shareholders, has told them to reject the takeover offer from Waras Dinamik Sdn Bhd at 64 sen a share.
In a circular to minority shareholders on Tuesday, Mercury Securities said the offer was “not reasonable” as Halex shares were relatively liquid and would remain traded on the Main Market of Bursa Securities.
Mercury Securities said based on the realised net asset value (RNAV) methodology, the estimated value of the entire equity interest in Halex was about RM86.3mil, which translates into 81 sen per share.
The offer price of 64 sen is lower than the estimated RNAV per Halex share of 81 sen, representing a discount of 21.0% and hence it is “not fair”.
It also said Halex shares traded below the offer price for the past one year up to the last trading day of March 21, whereby the offer price represents a premium of between 4.9% and 28.0% over the five-day, one-month, three-month, six-month and one-year volume weighted average price of Halex shares up to March 21.
Mercury Securities also said Halex shares were last traded at 67 sen and have since traded above the offer price up to the latest practicable date of April 20.
The offer price represents a discount of 4.5% to the last traded market price of Halex shares.
Meanwhile, Halex directors General Tan Sri Abdul Rahman Abdul Hamid, Leftenant General Datuk Wira Masood Zainal Abidin Abidin, Mohd Faisal Kaim Abdullah, Philip S. Anthonysamy, Leong Kah Mun and Teh Teik Bin also concurred with the evaluation and recommendation of Mercury Securities.
They also said the offer was “Not Fair” and “Not Reasonable” and recommended the minority shareholders Reject the offer.
Waras Dinamik and Datuk Ong Soon Ho, who is a director in both Halex and WDSB had earlier in March made mandatory takeover offer for the group’s shares at a cash price of 64 sen per share.
Inclusive of Ong’s own 4.57% direct stake in the group, the joint-offerers currently own approximately 50.13 million Halex shares, representing a 50.13% interest in the group following the purchase as at March 23.
Halex’s core businesses include agrochemicals, horticulture, plant tissue culture, vermiculture, and health and beauty essentials such as cotton, tissues, wet wipes, sanitary and hygienic products.
At 4pm, Halex was up two sen to 95 sen.
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