CIMB Research ceases coverage on Hovid

David Ho transformed the company from a manufacturer of traditional herbal tea business to a well-known manufacturer of pharmaceutical products

KUALA LUMPUR: CIMB Equities Research is ceasing coverage on Hovid as the condition for the voluntary take-over offer by its joint offerors (Ho Sue San and Fajar Astoria Sdn Bhd) has been met.  

The joint offerors have stated their intention to privatise the company as well as to withdraw the listing status of Hovid.

 “Our previous forecasts, valuations and recommendations should no longer be relied upon for further investment decisions. Our last recommendation was a Hold,” it said on Thursday.

 To recap, Hovid announced that its controlling shareholder, David Ho Sue San, together with Fajar Astoria Sdn Bhd had on Oct 9, 2017 offered to acquire all outstanding shares (66.3%) and warrants (56.4%) that were not held by both parties. 

The offer to purchase each share and warrant was set at 38 sen and 20 sen, respectively.  

Hence, Hovid’s public shareholding spread had dipped below the minimum 25% public shareholding spread. 

“As such, we are ceasing coverage on Hovid given its plans to withdraw its listing status. Our previous forecasts, valuations and recommendations should no longer be relied upon for further investment decisions. Our last recommendation was a Hold,” it said.