Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on October 16, 2018

KUALA LUMPUR: Minority shareholders of Hovid Bhd have been advised to accept the takeover offer by Fajar Astoria Sdn Bhd and Hovid managing director David Ho Sue San for the rest of the shares in the Ipoh-based pharmaceutical company for 38 sen per offer share and 20 sen per offer warrant.

In the independent advice circular to Hovid shareholders on Bursa Malaysia yesterday, AmInvestment Bank Bhd said it is of the view that the offer to acquire Hovid is “fair” and “reasonable”. As at last Tuesday, the offer shares comprised 173.11 million shares or 20.95% of Hovid’s total issued shares.

According to AmInvestment Bank, the offer is deemed fair as the 38 sen offer price represents a six sen or 18.8% premium to the ascribed equity value of 32 sen per share.

It also found the takeover offer reasonable as Hovid shares had not traded above the offer price from Oct 6, 2016 to Sept 13, 2018.

The offer price also represents a premium ranging from 5.6% to 16.9% per share to Hovid’s closing share price as at Sept 13, as well as the five-day, one-month, three-month, six-month and one-year volume-weighted average market prices as at Sept 13. It is the intention of the joint offerors not to maintain the listing status of Hovid on the Main Market of Bursa.

“Accordingly, AmInvestment Bank recommends that the holders accept the offer,” it added.

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