Hot stock Damansara Reality rises 11% following two announcements linked to takeover offer

by **Cals** Tue 03 Jun 2014, 00:00

Hot stock Damansara Reality rises 11% following two announcements linked to takeover offer

Business & Markets 2014

Written by Jonathan Gan of theedgemalaysia.com

Monday, 02 June 2014 16:13

KUALA LUMPUR (June 2): Damansara Reality Bhd’s (DBHD) shares rose 10.9% in late trades following announcements linked to the takeover offer by Seaview Holdings Sdn Bhd for the company.

At 3:55pm, shares of the property developer rose 16 sen or 10.9% to RM1.63 per share with some 5.7 million shares traded.

According to Bursa announcements today, Seaview Holdings had through Kenanga Investment Bank acquired 41,000 DBHD's shares at a price of RM1.4773 per unit and then disposed 75,000 of these shares for RM1.4407 per unit.

Seaview announced an offer price of 50 sen for all remaining voting shares in the group last week.

But independent advisor Mainstreet Advisers Sdn Bhd, a corporate finance advisory firm appointed by DBhd, said evaluation of the Seaview's offer of 50 sen was “not fair” and “not reasonable” to shareholders.

“We are of the view that the offer is not fair and not reasonable to the holders. As such, we recommend that the holders reject the offer,” said the advisory firm in a statement to Bursa Malaysia.

“We note that the offer price of 50 sen per DBhd share represents a discount of 32 sen or 39% of the realisable net asset value (RNAV) of DBhd shares,” Mainstreet said.

The advisory firm is also of the opinion that DBhd’s RNAV is 82 sen, although the company’s official RNAV figures as of March 31, 2014 was 40.3 sen.