Hii’s offer price for Golsta deemed “fair and reasonable” by TA Securitie

by **Cals** Tue 25 Mar 2014, 00:37

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Monday, 24 March 2014 14:11

KUALA LUMPUR (Mar 24): TA Securities Holdings Bhd deemed Tan Sri Clement Hii’s offer price of RM2.10 per share for the remaining shares in Golsta Synergy Bhd as “fair and reasonable”.

In a circular to shareholders today, independent advisor TA Securities had recommended shareholders to take up the offer as it is a premium to the fair value of Golsta’s shares.

“The offer price represents a premium of 41.9% to the appraised fair value of Golsta share of RM1.48 based on the revalued net asset value (RNAV) valuation methodology,” said TA Securities.

At 12.30 pm noon break today, Golsta shares were traded at RM2.80, up 5 sen or 1.8% with some 195,500 shares done.

TA Securities noted that Golsta shares were traded above the offer price and had advised shareholders who wish to immediately realise their investment to dispose their shares in the open market.

It added that there is no guarantee that the shares will continue to trade at the current level in the future.

Concluding the circular, TA Securities said: “on an overall basis, we are of the view that the offer is fair and reasonable.

“Accordingly, we recommend holders to accept the offer,” said TA Securities.

Tan Sri Clement Hii, through GS Capital, had emerged as a major shareholder of Golsta in February, after acquiring 16.95 million shares or a 36.69% stake in the company.

With the acquisition, Hii had triggered a mandatory general offer for the rest of the shares in Golsta not owned by him, at RM2.10 per share.