PETALING JAYA: Minority shareholders of NuEnergy Holdings Bhd
are recommended to accept the takeover offer from the company’s single-largest shareholder, even though the offer is deemed “not fair” for being 47% lower than the stock’s fair value.
The recommendation came from independent adviser, Sierac Corporate Advisers Sdn Bhd, and non-interested directors of NuEnergy.
Sierac, however, said that the takeover offer was “reasonable”.
This was considering that the offer price of 60 sen was at a 20% premium over the last traded price of NuEnergy at 50 sen.
NuEnergy shares are also relatively illiquid when compared against Bursa Malaysia’s Energy Index.
“Given such limited liquidity, the ability of holders to dispose of sizeable blocks of NuEnergy shares in the open market without exerting downward pressure on the market price is constrained.”
The independent advice also noted that NuEnergy had not received any alternative offer, and as such, the takeover offer by Agrobulk Holdings Sdn Bhd constitutes the “only liquidity option available” to the remaining shareholders to realise their investments.
On Aug 18, Agrobulk launched a conditional voluntary takeover offer for the Main Market-listed NuEnergy, which is involved in the solar renewable energy business.
Agrobulk owns a 30.87% stake in NuEnergy.
It is noteworthy that Agrobulk intends to maintain the listing status of NuEnergy on the Main Market, despite making the takeover offer for the remaining shares it did not own.
