Friday 29 Mar 2024
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KUALA LUMPUR (Dec 17): Public Investment Bank Bhd (Public IB) has advised shareholders of Unisem (M) Bhd to reject the latter's takeover by its joint offerors of RM3.30 per share as it is not fair and not reasonable.

In a filing to Bursa Malaysia today, Public IB said the takeover offer of RM3.30 per share by the joint offerors — Unisem chairman and group managing director John Chia Sin Tet, Unisem executive director Alexander Chia Jhet Wern, Jayvest Holdings Sdn Bhd, Huatian Electronics Group (HK) Ltd, Huatian Technology (Malaysia) Sdn Bhd and SCQ Industries Sdn Bhd — was not fair, as it was below the range of ascribed equity value per Unisem share.

This is despite the offer price representing a premium ranging from 11.1% to 40.43% over the historical share price of Unisem.

"The ascribed equity value of the entire equity interest in the group ranges from RM3.14 billion to RM3.91 billion or equivalent to RM4.31 to RM5.38 per Unisem share.

"The offer price of RM3.30 is below the range of the ascribed equity value per Unisem share and represents a discount of RM1.01 to RM2.08 or equivalent to 23.43% to 38.66% to the ascribed equity value per Unisem share," said Public IB.

Public IB also noted that the offer is not reasonable, as the joint offerors intend to maintain the listing status of Unisem and do not intend to acquire shares that they do not own post the takeover.

"Holders may consider realising their investment in Unisem in the open market in the event that the market price of Unisem shares is higher than the offer price as the joint offerors intend to maintain the listing status of Unisem and does not intend to invoke the provisions of Section 222(1) of the Capital Market and Services Act, 2007 to compulsorily acquire any remaining offer shares from the dissenting holders.

"Premised on the overall assessment of the reasonableness of the offer..., we are of the view that the offer is not reasonable," said Public IB.

At time of writing, Unisem shares were down 1 sen (0.31%) to RM3.21, with 991,700 shares changing hands.

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