The research house said the pharmaceutical company
KUALA LUMPUR: Pharmaceutical company Hovid Bhd’s share price to 37.5 sen early Tuesday, the highest since November 2016, after its major shareholder and another party offered to take it private at 38 sen.
At 9.41am, it was up 4.5 sen to 36.5 sen. There were 6.77 million shares traded at prices ranging from 36 sen to 37.5 sen. Its warrants rose 4.5 sen to 18.5 sen.
The FBM KLCI fell 2.26 points or 0.13% to 1,761.77. Turnover was 579.69 million shares valued at RM178.70mil. There were 214 gainers, 188 losers and 277 counters unchanged.
Hovid managing director and largest shareholder David Ho Sue San and Asean-focused private equity group TAEL Partners plan to take the company private by offering 38 sen per share.
Together with the offer of 20 sen per outstanding warrant, Ho and TAEL Partners (through special-purpose vehicle Fajar Astoria Sdn Bhd) are ready to fork out RM243.12mil in cash if their bid is successful.
The offer price for the remaining shares represented a premium of 20.55% to the adjusted five-day volume-weighted average market price (VWAP) of the shares until Oct 6.
As for the warrants (which allows the holder to subscribe to a new share each during the exercise period expiring June 5, 2018, at an exercise price of 18 sen per share), the offer price stood at a premium of 45.02% to the five-day VWAP until Oct 6.
Ho, who owns 33.72% in Hovid plus 43.57% of its warrants, and his joint offeror Fajar Astoria do not intend to maintain the listing status of the Ipoh-based pharmaceutical company.
The offer is conditional on the joint offerors receiving at least 90% of the offer shares excluding the ones held by persons acting in concert.
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