PETALING JAYA: Independent adviser Mainstreet Advisers Sdn Bhd has recommended Eurospan Holdings Bhd
’s shareholders to reject the mandatory general offer (MGO) from new controlling shareholder Samuel Ng Heng Hong.
In a circular to shareholders yesterday, Mainstreet Advisers said the offer was deemed “not fair and not reasonable.”
It said the offer price of RM2.30 per share that was triggered after Ng acquired a 74.14% stake in Eurospan, via private vehicle EC Synergy (M) Sdn Bhd, represented a discount to the company’s historical market performance, despite being above its adjusted net asset value.
“Holders are advised to closely monitor the market prices, trading volumes and any press releases and/or announcements made in relation to the offer before making a decision on the course of action to be taken in respect of the offer shares.”
In its assessment, Mainstreet Advisers noted that Eurospan’s entire equity was valued at approximately RM44.03mil, or 99 sen per share.
“(This) represents a premium of RM1.31 or 132.32% to the estimated value per Eurospan share,” it said.
It should be noted that the RM2.30 offer price was 21.77% below the last traded price of Eurospan shares on Aug 19 – which was a day prior to when the MGO was launched.
This also represented discounts ranging from 4.10% to 21.43% to the five-day, one-month, three-month, six-month and one-year volume-weighted average prices of Eurospan shares.
Mainstreet Advisers also said the offer is not reasonable as Eurospan shares will remain tradeable on the Main Market of Bursa Securities, noting that shareholders will still have the opportunity to realise their investment in the company’s shares at the prevailing market prices in the open market after the closing date of the offer on Oct 1.
