PETALING JAYA: Kim Hin Industry Bhd
's offer for privatisation by its joint offerors including the company and its chairman Chua Seng Huat at 85 sen per share has been deemed 'not fair and not reasonable' by its independent adviser.
As such, the independent adviser New Paradigm Securities Bhd said the non-interested minority shareholders and directors of the tile manufacturer should reject the offer.
"We are of the opinion the offer is not fair considering the significant discount of RM2.25 or approximately 72.58% to the estimated value per Kim Hin share, notwithstanding the offer price is at a premium to the historical market prices of Kim Hin shares," it said.
On the rationale that the offer is not reasonable, the independent adviser said Kim Hin shares are relatively inactively traded and illiquid, while the joint offerors have the intention not to maintain the listing status of Kim Hin.
"Holders should note that as at the latest practicable date (LPD), the joint offerors together with their persons acting in concert collectively hold approximately 63.78% of the shares. As at the LPD, the public shareholding spread of Kim Hin is 29.51%," it said.
"Resulting from the foregoing, as at the LPD, Kim Hin is still in compliance with the public spread requirement and remains traded on the Main Market of Bursa Securities," it added.
