Mi­nor­ity share­hold­ers ad­vised to re­ject Tony Tiah’s of­fer

The Star Malaysia - StarBiz - - News -

PE­TAL­ING JAYA: TA En­ter­prise Bhd‘s (TAE) mi­nor­ity share­hold­ers have been ad­vised to re­ject the takeover of­fer by Datuk Tony Tiah Thee Kian as the of­fer of 66 sen share is not fair and not rea­son­able.

In­de­pen­dent ad­viser BDO Cap­i­tal Con­sul­tants said the of­fer was not fair and not rea­son­able and ac­cord­ingly, “we ad­vise and rec­om­mend that hold­ers to re­ject”.

BDO said based on the unau­dited con­sol­i­dated re­sults of TAE as at March 31, 2018, the es­ti­mated fair value of the en­tire eq­uity in­ter­est in TAE is about RM4.438bil to RM4.449bil which trans­lates into an es­ti­mated fair value per share of RM2.59 to RM2.60.

“The of­fer price of 66 sen is lower than and rep­re­sents a sig­nif­i­cant dis­count of RM1.93 to RM1.94 or 74.5% to 74.6% to the es­ti­mated fair value per of­fer share of RM2.59 to RM2.60,” it said.

On July 2, the TAE board of di­rec­tors an­nounced it had re­ceived the no­tice from TA Se­cu­ri­ties on be­half of the of­feror to ac­quire all the re­main­ing or­di­nary shares in TAE not al­ready held by the of­feror and par­ties act­ing in con­cert at 66 sen per share.

Tiah and his wife Datin Ali­cia Tiah co-founded the com­pany in the 1990s.

For the sec­ond quar­ter ended June 30, 2018 TAE recorded a net profit of RM97.94mil, an in­crease from RM64.71mil made in the same pe­riod the year be­fore. Rev­enue for the cur­rent quar­ter stood at RM232.28mil from RM255.71mil pre­vi­ously.

In a fil­ing to the stock ex­change, the com­pany said the rise in prof­itabil­ity was mainly at­trib­ut­able to con­tri­bu­tion from prop­erty in­vest­ment and prop­erty de­vel­op­ment.

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