KUALA LUMPUR (Oct 13): The take-over offer made by Goldis Bhd for the remaining shares in property developer IGB Corp Bhd at RM2.88 each is "not fair and not reasonable", according to independent adviser RHB Investment Bank Bhd (RHB IB).
According to IGB’s independent advice circular (IAC) to shareholders posted on Bursa Malaysia's website today, RHB IB has advised and recommended that IGB shareholders reject the offer.
“After careful examination of the terms of the offer and taking into consideration the evaluation and recommendation by RHB IB, the non-interested directors have concurred with the recommendation of RHB IB that the offer is not fair and not reasonable, and recommends that holders reject the offer,” RHB IB said.
According to the IAC, Goldis already owns 31.11% in IGB. Goldis has obtained irrevocable undertakings from IGB shareholders, who own a collective 17.3% stake in IGB, to accept the offer.
Goldis' offer is deemed unfair after taking into account that the offer price is below
revaluated net asset value (RNAV) of IGB, renowned for its Mid Valley City project here.
RHB IB said the offer price represented a discount of RM2.45 or 45.96% to the RNAV for IGB at RM5.33 a share.
“Although the share price of IGB had traded below the offer price for the past one year, we are of the opinion that the offer price is not fair based on the revaluated net assets value (RNAV) evaluation,” said RHB IB.
RHB IB said IGB's prospects were expected to remain positive given its ongoing and proposed projects.
Therefore, by not accepting the offer, RHB IB said IGB shareholders would continue to participate in the growth of IGB and have the opportunity to fully realise their investments based on IGB’s prospects.
RHB IB said the business of IGB would remain intact and continue as a going concern as the offeror had no intention to liquidate IGB or introduce major changes to its business in the near term.
Goldis intends to maintain the listing status of IGB on the Bursa Malaysia's Main Market.