Kenanga : Focal Aims take-over offer “not fair and not reasonable”

Business & Markets 2013
Written by Chong Jin Hun of theedgemalaysia.com
Friday, 01 November 2013 17:31
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KUALA LUMPUR (Nov 1 ): The planned take-over offer for Focal Aims Holdings
Bhd by parties linked to S P Setia Bhd president and chief executive officer Tan
Sri Liew Kee Sin is seen as "not fair and not reasonable", independent adviser
Kenanga Investment Bank Bhd says.
In a shareholder circular today, Kenanga has recommended that shareholders
of Focal Aims, a Johor-based property developer, reject the offer.
Kenanga said its recommendation has taken into acccount several factors.
These include the offer price which is below Focal Aims' revised net asset
value.
Kenanga has also considered the historical financial performance of Focal
Aims, the offerors' plans for the company and prospects of the firm.
Focal Aims said in September this year that Eco World Development Holdings
Sdn Bhd and Liew Tian Xiong is buying a controlling 65.05% stake in Focal
Aims for RM230.69 million or RM1.40 share cash.
Eco World and Tian Xiong had signed a conditional share sale agreement with
various shareholders of Focal Aims to acquire the stake comprising 164.78
million shares. Tian Xiong is Kee Sin’s son.
The buyers are obliged to extend a mandatory general offer to holders of the
remaining shares in Focal Aims for RM1.40 each.