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Microlink shareholders urged to reject takeover offer
by Cals Sat 08 Jun 2013, 22:36
Saturday June 8, 2013
Microlink shareholders urged to reject takeover offer
PETALING JAYA: Independent adviser Kenanga Investment Bank Bhd has advised IT services provider Microlink Solutions Bhd's shareholders to reject the takeover offer from Formis Resources Bhd, as the offer price of 60 sen per share was “not fair” and “not reasonable”.
In its advice circular to shareholders on Bursa Malaysia, it said, among others, that the earnings prospects of the company remained visible and healthy, and that therefore, the offer should be based on valuations which were in a higher range.
It also said the offer price had not fully valued the company for its strong net cash position of 13.7 sen per share.
On May 8, Formis Resources extended a voluntary conditional takeover offer for all the remaining ordinary shares of 10 sen each in Microlink not already owned by its wholly owned subsidiary Formis Holdings Bhd.
As at May 6, Formis Holdings directly held 39,044,600 Microlink shares, representing a 29.22% equity interest in Microlink.
The stock closed four sen higher to 62 sen in yesterday's trading
Microlink shareholders urged to reject takeover offer
PETALING JAYA: Independent adviser Kenanga Investment Bank Bhd has advised IT services provider Microlink Solutions Bhd's shareholders to reject the takeover offer from Formis Resources Bhd, as the offer price of 60 sen per share was “not fair” and “not reasonable”.
In its advice circular to shareholders on Bursa Malaysia, it said, among others, that the earnings prospects of the company remained visible and healthy, and that therefore, the offer should be based on valuations which were in a higher range.
It also said the offer price had not fully valued the company for its strong net cash position of 13.7 sen per share.
On May 8, Formis Resources extended a voluntary conditional takeover offer for all the remaining ordinary shares of 10 sen each in Microlink not already owned by its wholly owned subsidiary Formis Holdings Bhd.
As at May 6, Formis Holdings directly held 39,044,600 Microlink shares, representing a 29.22% equity interest in Microlink.
The stock closed four sen higher to 62 sen in yesterday's trading
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