‘Offer for Alcom not fair, not reasonable’
PETALING JAYA: The takeover offer by prominent businessman Yeoh Jin Hoe for Aluminium Company of Malaysia Bhd (Alcom) is deemed “not fair” and “not reasonable”, according to independent adviser Mercury Securities.
Shareholders are advised to reject the offer.
In an independent advice circular filed with Bursa Malaysia, Mercury Securities said the offer price of 61 sen per share represents a 68.88% discount to Alcom’s revalued net asset value of RM1.96 per share or RM259.38 million.
Besides that, the offer price has been lower than the closing prices of Alcom shares for about 80% of the total market days over the past five years.
As the offeror intends to maintain the listing status of Alcom, shareholders will still have the opportunity to realise their investments in the open market after the closing date on Oct 27, 2016.
Alcom’s non-interested directors Tunku Tan Sri Imran ibni Almarhum Tuanku Ja’afar and Tengku Yunus Kamaruddin have concurred with Mercury Securities that the offer is not fair and not reasonable.