KUALA LUMPUR: Asteel Group Bhd
’s independent adviser has recommended that shareholders reject the unconditional mandatory takeover offer by Hii Capital Holdings Sdn Bhd, saying the offer is “not fair and not reasonable”.
MainStreet Advisers Sdn Bhd said the cash offer of 7.5 sen per share represents a 39.81% discount to its estimated value of 12.46 sen per ASteel share, based on the group’s unaudited net assets as at June 30, 2026.
It also noted that the offer price represents a 37.13% discount to ASteel’s audited net asset value of 11.93 sen per share as at Dec 31, 2025.
MainStreet said that while the offer price was above ASteel’s historical market prices before the takeover offer, it was below the company’s estimated value.
The offer price was also at an 11.76% discount to ASteel’s last traded price as at Sept 17 and a 14.29% discount to its five-day volume-weighted average price up to that date.
The independent adviser also considered the offer not reasonable, noting that Hii Capital and ultimate offeror Datuk Clifford Hii Toh Leong intend to maintain ASteel’s listing on Bursa Malaysia’s Main Market and do not intend to compulsorily acquire the remaining shares even if the relevant threshold is met.
MainStreet said shareholders who retain their shares would continue to have potential exposure to a recovery in ASteel’s share price towards its underlying net asset value, as well as possible improvements in the group’s financial performance.
It recommended that shareholders reject the offer. ASteel’s non-interested directors concurred with MainStreet’s assessment and also recommended shareholders reject the offer.
The mandatory offer arose after Hii Capital acquired 270 million ASteel shares, representing a 52.94% stake, from a group of vendors for RM20.25mil, or 7.5 sen per share. The acquisition was completed on Aug 26.
