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Techfast take-over offer fair & reasonable – AmInvestment

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Techfast take-over offer fair & reasonable – AmInvestment Empty Techfast take-over offer fair & reasonable – AmInvestment

Post by Cals Tue 17 Jun 2014, 01:13

Techfast take-over offer fair & reasonable – AmInvestment
Business & Markets 2014
Written by Chong Jin Hun of theedgemalaysia.com   
Monday, 16 June 2014 12:13

KUALA LUMPUR (June 16): The proposed take-over offer for Techfast Holdings Bhd is fair and reaonable, according to the exercise's independent adviser AmInvestment Bank Bhd.

AmInvestment said in its independent advice circular today its assessment took into account several factors including the firm's enterprise value-earnings before interest, taxes, depreciation, and amortisation (EV/Ebitda) ratio, and fair value of the stock.

AmInvestment said Techfast's EV/Ebitda ratio at 12.2 times, was above the comparable companies' range of between 6.2 and  8.78 times. Meanwhile, the offer price of 26 sen is higher than the 17 sen to 20 sen valuation range.

While Techfast directors recommended minority shareholders accept the offer, the directors have indicated their intention to reject the offer. This is because the directors want to continue participating in Techfast's operations and growth.

Last month, computer and telecomunication component manufacturer Techfast received the take-over offer from major shareholder Wong SK Holdings Sdn Bhd at 26 sen a share. Wong SK Holdings already owned 22.1 million shares or 14.45% of Techfast then.

Datuk Wong Shee Kai, the ultimate offeror for the exercise, is the controlling shareholder in Wong SK Holdings. Techfast said the acquirer intended to maintain the listing status of Techfast.
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