Euro Holdings MGO unfair and unreasonable, says independent adviser

by **Cals** Fri 03 Oct 2014, 18:05

Business & Markets 2014

Written by Shalini Kumar of theedgemalaysia.com

Friday, 03 October 2014 15:13

KUALA LUMPUR (Oct 3): The mandatory general offer (MGO) for Euro Holdings Bhd (EHB) at 44 sen per share has been deemed "not fair" and "not reasonable" by independent advisers DWA Advisory Sdn Bhd.

In a circular released to Bursa Malaysia today, DWA said the offer price of 44 sen per share did not reflect the fair value of EHB shares and was below its market price.

"Based on the revised net asset value (RNAV) valuation methodology, the pffer price represents a discount of RM0.59 or 57.28% to a fair value of RM1.03," it said.

"The trading of EHB shares had been relatively liquid for the past 12 months and the joint offerors have indicated their intention to maintain the listing status of EHB. As such, the offer is not reasonable as there are no sufficient reasons for the holders to accept the offer," it added.
DWA said it recommended shareholders reject the offer.

According to the circular, the other directors of the company, namely: Datuk Sri Mohd Haniff bin Abd Aziz, Lew Fatt Sin, Law Sim Shee, Lew Hin and Teh Hock Toh have said that they intend to reject the offer.

Last month, EHB said it had received a takeover offer from its executive director Datuk Sri Choong Yuen Kheong, major shareholder Datuk Tong Yun Mong and Tee Wee Sien, after collectively raising their stakes in the company to 38.6 million shares or 47.7%.

The offerors plan to continue with EHB’s existing businesses, focusing on property development.

"A detailed review and evaluation of the existing operations of the EHB Group will be undertaken and the future plans and expansion strategy of the EHB Group will be formulated after the offer," it said in the circular.
The MGO closes October 14.