GBH minority shareholders advised to accept Paragon’s offer
KUALA LUMPUR: Independent adviser Public Investment Bank Bhd has advised minority shareholders of Goh Ban Huat Bhd (GBH) to accept Paragon Adventure Sdn Bhd’s offer to acquire all remaining shares for RM1.40 per share.
The takeover offer came after tycoon Tan Sri Robert Tan Hua Choon sold his 51% stake in the ceramic products company to Paragon Adventure for RM145.71mil.
The takeover offer included its warrants, which were priced at 40 sen a piece after having considered the exercise price of RM1 per warrant.
Paragon Adventure intends to maintain Goh Ban Huat’s listing status on Bursa Malaysia’s Main Market.
Public Investment Bank said based on its evaluation, the offer is “fair and reasonable” as it provided an exit opportunity to the holders to realise their investment in GBH in cash at the offer price.
“Accordingly, we advise and recommend that holders to accept the offer,” Public Investment Bank added.
Public Investment Bank noted that the shares offer price is lower than and represents a discount of 2.10% over the last traded price of GBH Shares as at Sept 26 of RM1.43 and a discount of 2.78% over the last traded price of GBH Shares as at the Oct 23 of RM1.44.