KUALA LUMPUR: Pan Malaysia Holdings Bhd's independent adviser told shareholders to reject Exsim Hospitality Holdings Sdn Bhd's takeover offer of six sen a share, calling it "unfair" and "unreasonable".
Exsim triggered a mandatory general offer for shares it does not own in Pan Malaysia after it bought a 65.90 per cent interest in the company for RM36.7 million, or six sen a share.
Exsim Hospitality is owned by Exsim group founders Lim Aik Fu, Lim Aik Hoe and Lim Aik Kiat.
Aik Fu owns a 25 per cent interest, while his elder brothers Aik Hoe and Aik Kiat own equal share of the remaining 75 per cent.
In a filing with Bursa Malaysia, Pan Malaysia's independent adviser Aminvestment Bank Bhd said it deemed the offer "unfair" because it is lower and represents a discount of RM0.055 (47.83 per cent) over the stock's last traded price prior to the offer announcement.
It said the historical market prices of Pan Malaysia' s shares after the notice and up to April 1, 2024, ranging from 11 sen to 22.5 sen, would serve a more meaningful reference of the recent market transactions and market prices of Pan Malaysia's shares and the current sentiment of the market for Pan Malaysia's shares.
Aminvestment Bank also said that the offer is 'not reasonable' as Pan Malaysia's shares will remain tradable on the Main market of Bursa Securities even after the closing date of the offer on April 19, 2024. This is despite the shares being relatively less liquid when compared against the KLCI Consumer Products Index in the past 12 months up to March 2024.
Exsim's stake purchase in Pan Malaysia is part of a larger strategy to expand its hospitality business.
It has been venturing into short-term accommodations in the KLCC area since 2018/2019.
Exsim Development Sdn Bhd, also controlled by the Lim brothers, clarified that it has no plans to merge its property development arm with Pan Malaysia shortly after buying into the company.
Pan Malaysia currently owns the Corus Paradise Resort in Port Dickson, valued at RM34.83 million according to last year's annual report.
For the six-month ended Dec 31, 2023, Pan Malaysia posted a net loss of RM1.58 million against RM3 million revenue.