Bid for Wong En­gi­neer­ing ‘not fair, not rea­son­able’

The Sun (Malaysia) - - SUNBIZ -

PE­TAL­ING JAYA: In­de­pen­dent ad­viser In­ter-Pa­cific Se­cu­ri­ties Sdn Bhd deems the takeover of­fer of 65 sen per share for Wong En­gi­neer­ing Corp Bhd (WECB) as “not fair” and “not rea­son­able”.

Ac­cord­ingly, share­hold­ers of WECB are ad­vised to re­ject the of­fer from TNTT Realty Sdn Bhd and per­sons act­ing in con­cert.

In an in­de­pen­dent ad­vice cir­cu­lar filed with the stock ex­change last Fri­day, In­terPa­cific Se­cu­ri­ties said as the of­fer price rep­re­sents a dis­count of 5 sen or 7.14% to the reval­ued net as­set value of 70 sen, thus it is deemed “not fair”.

In­ter-Pa­cific is also of the view that the of­fer is “not rea­son­able” con­sid­er­ing the of­feror in­tends to main­tain the list­ing sta­tus of WECB.

“There­fore, WECB shares will re­main traded on Bursa Se­cu­ri­ties and, hence, the hold­ers will still have the op­por­tu­nity to re­alise their in­vest­ments in WECB shares in the open mar­ket af­ter the clos­ing date,” it said.

Be­sides that, af­ter the change in con­trol­ling share­hold­ers pur­suant to the share ac­qui­si­tion and the date of the no­tice, the trad­ing vol­ume in WECB shares has in­creased sig­nif­i­cantly.

“With the in­crease in trad­ing liq­uid­ity, hold­ers would have the op­por­tu­nity to dis­pose of their WECB shares in the open mar­ket if they do not wish to ac­cept the of­fer,” In­ter-Pa­cific noted.

The high-pre­ci­sion com­po­nents maker had in Au­gust re­ceived an un­con­di­tional manda­tory of­fer from TNTT Realty and per­sons act­ing in con­cert to ac­quire all its re­main­ing shares for 65 sen, valu­ing the com­pany at RM59.5 mil­lion.

TNTT is a ma­jor share­holder of Tiong Nam Lo­gis­tics Hold­ings Bhd and is con­trolled by the lat­ter’s ma­jor share­holder and man­ag­ing di­rec­tor, Ong Yoong Ny­ock.

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