Malaysia Aica minority shareholders told to reject takeover offer (Update)

KUALA LUMPUR: The board of Malaysia Aica (MAica) and the independent adviser, AMInvestment Bank Bhd have advised the minority shareholders to reject the takeover offer by TER Equity Sdn Bhd as it was below the indicative RNAV of the group.
They said on Friday the offer is "Not Fair" and "Not Reasonable" and recommend holders "Reject" the offer.
TER Equity, a private entity owned by Datuk Ter Leong Yap, had on Jan 23 served an unconditional takeover offer to acquire all the shares in MAica for 85 sen per share following the latter's acquisition of 39.28 million shares for RM33.39mil cash or 85 sen per share.

On Jan 22, TER Equity entered into an unconditional share sale agreement with four MAica shareholders, namely Tan Sri Tan Hua Choon, Tan Ching Ching, Tan Han Chuan and Wong Hok Yim, to acquire 39.28 million shares of the company for RM33.39mil.

Upon completion, Ter and parties acting in concert held about 79.35 million MAica shares, representing 50.11% of the issued and paid-up share capital of Maica.

In the circular issued by MAica board, it said the indicative RNAV of MAica group ranged from RM138.26mil to RM146.16mil or about 87 sen to 92 sen. The offer price was 2.3% to 7.6% below the indicative RNAV per share.

It added that MAica had been trading above the RM1 level since the date of notice and the highest closing price was RM1.69 on Feb 17.
AmInvestment said the offer price of 85 sen was not fair as the range if the indicative RNAV per share and the prevailing market price of the shares from the date of notice to the last practicable date was greater than the offer price.