This article first appeared in The Edge Financial Daily on July 10, 2018

KUALA LUMPUR: Petaling Tin Bhd’s largest shareholder Tan Sri Dr Chen Lip Keong has extended his takeover offer for the remaining shares he does not own in the loss-making property development company by another two weeks, to 5pm on July 26.

In a filing with Bursa Malaysia yesterday, Petaling Tin said save for the extended closing date, all other details, terms and conditions of the offer remain unchanged.

The level of acceptance for Petaling Tin shares stood at 323.76 million or a 93.62% stake as at July 6.

On May 31, gaming tycoon Chen offered to buy the 34.58 million shares or a 9.998% stake in Petaling Tin that he did not own at 40 sen per share or a total of RM13.83 million.

Last Monday, Inter-Pacific Securities Sdn Bhd said the offer by Chen was not fair, but reasonable to minority shareholders. Accordingly, the firm recommended that minority shareholders accept the offer.

Petaling Tin said its independent directors have concurred with Inter-Pacific’s assessment of the takeover price, and equally recommend that the minority shareholders accept Chen’s offer.

In evaluating the takeover offer, Inter-Pacific said it was deemed “not fair” as Chen’s 40 sen offer represents a discount of between 61.9% and 62.26% to the range of Petaling Tin’s revalued net asset value, which hovers between RM1.05 and RM1.06 per share.