Re­ject of­fer, May­pak share­hold­ers ad­vised

The Sun (Malaysia) - - SUNBIZ -

PETALING JAYA: In­de­pen­dent ad­viser Mer­cury Se­cu­ri­ties Sdn Bhd deems the takeover of­fer by Ja­pan’s Tai­sei Lam­ick Co Ltd for Malaysia Pack­ag­ing In­dus­try Bhd (May­pak) shares “rea­son­able” but “not fair”.

In an in­de­pen­dent ad­vice cir­cu­lar filed with the stock ex­change yes­ter­day, Mer­cury Se­cu­ri­ties said the rea­son­able view is premised on the illiq­uid­ity of May­pak shares and that the of­fer pro­vides an exit op­por­tu­nity to its share­hold­ers to re­alise their in­vest­ment in the May­pak shares in cash at the of­fer price.

None­the­less, it is of the view that the of­fer is “not fair” and out­weighs the “rea­son­able” view as the of­fer price of 65 sen rep­re­sents a sig­nif­i­cant dis­count of 63.07% over the es­ti­mated reval­ued net as­set value of RM73.86 mil­lion or RM1.76 per share.

Ac­cord­ingly, Mer­cury Se­cu­ri­ties rec­om­mends the hold­ers re­ject the of­fer.

The of­fer will re­main open for ac­cep­tances un­til 5pm on Oct 27.

Tai­sei does not in­tend to main­tain the list­ing sta­tus of May­pak, which is in­volved in the man­u­fac­tur­ing and sale of printed and lam­i­nated flex­i­ble light pack­ag­ing ma­te­ri­als.

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