Friday 29 Mar 2024
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KUALA LUMPUR (Oct 15): 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 its independent advice circular to Hovid shareholders on Bursa Malaysia today, AmInvestment Bank Bhd said it is of the view that the offer to acquire Hovid is “fair” and “reasonable”. As at Oct 9, the offer shares comprised 173.11 million shares or 20.95% of the total issued shares.

According to AmInvestment Bank, the offer is deemed fair as the 38 sen offer price represents a 6 sen or 18.8% premium over the ascribed equity value of 32 sen per share.

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

The offer price also represents a premium ranging from 5.6% to 16.9% per share over the closing market 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 up to 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.

In September, Fajar Astoria and Ho made a second attempt to take Hovid private, offering to acquire the shares at 38 sen apiece and its warrants for 20 sen each — the same prices offered as their previous takeover attempt.

At 4.51pm, Hovid shares were up 0.5 sen or 1.37% at 37 sen, with 1.78 million shares gone, giving it a market capitalisation of RM305.65 million.

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