Regent Wise offer for MCT not fair, says Kenanga IB

KUALA LUMPUR: MCT Bhd’s shareholders should reject the takeover bid by Regent Wise Investments Ltd as the offer is “not fair and not reasonable”, says independent adviser Kenanga Investment Bank Bhd (Kenanga IB).

Regent Wise is a unit of Philippines-based property developer Ayala Land Inc.

It bought 230.12 million MCT shares, or a 17.24 per cent stake, from Tan Sri Goh Ming Choon for RM202.5 million, or 88 sen per share, on January 2.

In an independent advice circular (IAC), Kenanga IB said as the offer price of 88 sen was lower and represented a discount of 36.23 per cent over the estimated fair value per MCT share of RM1.38, the offer was deemed “not fair”.

“We are of the view that the offer is not reasonable as the offeror intends to maintain MCT’s listing status, as well as the liquidity of MCT shares, with an average daily trading volume of 73.77 million for the past 12 months,” it added.

Kenanga IB said shareholders were advised to monitor the announcements made by the offeror and market price of MCT shares prior to the closing date before making the decision as to whether to accept or reject the offer.

“After careful assessment of the terms and conditions of the offer and the evaluation in the IAC, the non-interested directors of MCT have concurred with the recommendation of the independent adviser to reject the offer,” it said.