KUALA LUMPUR: Shareholders of Malaysia Packaging Industry Bhd (Maypak) have been advised to accept the revised RM1 per share takeover offer from Taisei Lamick Co Ltd, although the offer is deemed not fair.
Mercury Securities Sdn Bhd, the independent adviser for Maypak on the Taisei takeover deal, said the revised offer price represented a significant premium of between 99.96 and 120.36 per cent over the five-day to one-year volume weighted average market price of Maypak shares as at the sale and purchase agreement’s last trading date on July 28.
In addition, Mercury Securities, in supplemental independent advice circular filed via Bursa Malaysia yesterday, said Maypak shares had never been traded at or higher than the revised offer price for the past 10 years up to the last trading date, and that it represented a lower discount of 43.18 per cent over the estimated revalued net asset value (RNAV) per share of RM1.76.
Further, the revised offer price is higher than the market price but is still lower than the value of the offer shares, thus viewing it as not fair.
“We view that the revised offer is reasonable as it provides an exit opportunity to the holders (especially for those holding a significant number of the Maypak Shares) to realise their investment in cash,” it said.
On October 17, Mercury Securities had advised Maypak shareholders to reject the offer, which was priced at 65 sen per share, with its “not fair” view outweighing its “reasonable” view as the offer price represented a significant discount of 63.07 per cent over the estimated RNAV per Maypak share of RM1.76.
On October 31, Taisei Lamick revised the offer price to RM1, which would remain open for acceptance until 5pm on November 15.
On September 15, Maypak had announced that it received a takeover offer from Japan-based Taisei Lamick after a sale and purchase agreement entered between both parties in July to purchase a stake of 23.1 million shares became unconditional.
The offer has triggered a mandatory takeover offer to acquire all the remaining shares in Maypak it did not own.
Maypak closed 1.5 sen, or 1.5 per cent, higher at RM1.01 yesterday with thin trade of 34,400 shares.