KUALA LUMPUR: The Tang family’s unconditional privatisation offer for the remaining shares in The Store Corp Bhd they do not own has been deemed “not fair but reasonable” by independent adviser Mercury Securities Sdn Bhd.

“The offer price of RM3.70 per share is lower than the estimated revalued net asset valuation per share, representing a discount of 46%,” the adviser said in an independent advice circular yesterday.

However, Mercury Securities opined that the “reasonable” view outweighs its unfairness as the offer price is higher than the historical trading price for approximately 99% of total market days since The Store’s listing in 1994.

Specifically, the offer price represents a premium of between 16.92% and 27.95% over the five-day, one-month, three-month, six-month and one-year volume-weighted average prices of The Store shares up to Nov 25, it noted.

Also, after taking into consideration the illiquidity of The Store shares, the offer provides an exit opportunity for holders to realise their investment in The Store, said Mercury Securities.

“Accordingly, Mercury Securities recommends holders accept the offer,” it said.

Non-interested directors of the board concurred with the evaluation and recommended that shareholders accept the offer, according to the circular, which was filed by The Store with Bursa Malaysia yesterday.

To recap, The Store group managing director Tan Sri Tang Yeam Soon and his wife Puan Sri Khor Guik Lee, who is an executive director of the company, launched a mandatory general offer (MGO) for the remaining shares they do not own in the company after the couple acquired an additional 13.88% stake in it from Nirvana Asia Ltd founder Tan Sri Kong Hon Kong.

Tang and Khor initially offered RM3.52 a share when the MGO was announced in November, but they later upped it to RM3.70 on last Friday.

The Tang family now collectively owns a 59.57% stake in The Store.

The offer is open for acceptances until 5pm on Jan 10.

The Store’s share price was unchanged at RM3.74 yesterday, after 72,900 shares changed hands, giving the company a market capitalisation of RM256.2 million.