Takeover offer for MCT ‘not fair, not reasonable’

PETALING JAYA: Independent adviser Kenanga Investment Bank Bhd has advised shareholders of MCT Bhd to reject the takeover offer by Philippine property giant Ayala Land Inc’s unit, Regent Wise Investments Ltd, which is deemed “not fair and not reasonable”.

In an independent advice circular filed with the stock exchange, Kenanga said the offer is not fair as the offer price of 88 sen is lower than and represents a discount of 50 sen or 36.23% over the estimated fair value per MCT share of RM1.38.

On reasonableness, it said the offer price represents a discount of 1.1% and 8.3% to its volume weighted average prices of 88.98 sen and 96 sen over the past 12 and 24 months, respectively.

“Premised on the above, we are of the view that the offer is not reasonable,” the adviser noted.

The non-interested directors of MCT, after considering all aspects of the offer, have concurred with Kenanga’s evaluation and recommendation that the offer is “not fair and not reasonable” and urged shareholders to reject the offer.

The offeror intends to maintain the listing status of MCT. The offer remains open until 5pm on Feb 19.

Last month, Regent Wise Investments, a major shareholder in MCT, launched a takeover offer at 88 sen apiece, after one of MCT’s founders, Tan Sri Goh Ming Choon, agreed to sell his 17.24% interest for RM202.5 million.

Post-acquisition, Regent Wise Investments’ shareholding in MCT will increase from 32.95% to 50.19%. Regent Wise Investments emerged as a major shareholder of MCT back in April 2015 with a 9.17% stake, and it raised the interest to 32.95% just a month later.

Ayala and its subsidiaries are involved in the planning and development of integrated estates with mixed use such as residential, commercial and industrial lots.

MCT was unchanged at 87.5 sen on 482,000 shares done yesterday.