KUALA LUMPUR (Oct 16): Public Investment Bank Bhd has told shareholders of AbleGroup Bhd to reject the takeover bid by Parallel Pinnacle Sdn Bhd, saying the offer is “not fair and not reasonable.”

Parallel Pinnacle is the vehicle of AbleGroup’s controlling shareholder and managing director Datuk Lim Kim Huat, who — together his wife, Datin Chan Shiou Bin — is the ultimate offeror in the takeover bid.

Public IB, the independent adviser in the takeover deal, said Parallel Pinnacle’s offer price of 13 sen is at a nine sen or 40.91% discount to its estimate of AbleGroup’s revalued net asset value of 22 sen per share.
 
In addition, the investment bank said the takeover offer was not reasonable to the minority shareholders of the property and granite group, as AbleGroup shares are relatively liquid, with average monthly trading volume of 12.35%, higher than the 10.81% seen at the KL Industrial Production Index.

“As such, holders may consider to realise their investment in AbleGroup on the open market, in the event that the market price of AbleGroup shares is higher than the offer price, as the offeror intends to maintain the listing status of AbleGroup,” Public IB said in a circular to the shareholders.

“Accordingly, we advise and recommend that holders reject the offer,” the investment bank added.
 
AbleGroup said its independent directors concurred with the evaluation by Public IB, and recommended holders of the shares reject the takeover bid.

Parallel Pinnacle launched the takeover bid after it purchased the shares owned by Loi Heng Sewn, pushing its shareholdings, together with related parties' in AbleGroup, to 43.97%.

AbleGroup’s share price closed unchanged today at 14 sen (7.69% higher than the takeover price), valuing the group at RM36.95 million.