PETALING JAYA: Rengit Capital Sdn Bhd’s takeover offer for Leweko Resources Bhd at 18 sen a share is not fair, but reasonable, says independent adviser UOB Kay Hian Securities (M) Sdn Bhd (UOBKH).
In its independent advice to minority shareholders of Leweko, which is involved in property developing and precast concrete, UOBKH recommended that the minority shareholders accept the takeover offer.
On June 28, Rengit Capital acquired a 50.47% stake in Leweko, triggering an unconditional mandatory take-over offer for the remaining stake.
It also acquired 93.58% of the warrants.mIt then made a cash offer of 18 sen per share and one sen per warrant. However, Rengit Capital intends to maintain the listing status of Leweko on the Main Market of Bursa Securities.
UOBKH said Leweko shares and warrants were relatively illiquid and the average monthly trading volume-to-free-float of the shares and warrants was just 0.94% and 2.50%, respectively.
“Holders may have limited opportunities or it may require a longer time for holders to dispose their offer securities in the open market after the closing date. “In the absence of a competing offer, the offer provides an opportunity to the holders to realise their investments in Leweko at the share and warrant offer prices."