KUALA LUMPUR (Aug 4): Khor Teng Tong Holdings Sdn Bhd, which controls 32.3% equity stake in Hunza Properties Bhd, has revised its offer price for the proposed privatisation of the Penang-based property firm to RM2.90 a share, from RM 2.50 previously.
In its filing with Bursa Malaysia today, Hunza said it had received a letter from Khor Teng Tong Holdings to revise the offer price for the proposed selective capital reduction and repayment (SCR) to RM2.90 for each existing Hunza share held by the entitled shareholders, or RM267.6 million in total, up from RM230.7 million previously.
The offer price of RM2.90 per share represents a 10.3% premium to Hunza’s prevailing market price of RM2.63. Hunza’s share price had surged as much 13.3% to a high of RM 2.38 on April 2, following the news on the privatisation offer.
Hunza's (fundamental: 1.7; valuation: 1.5) share price gained 4.37% today to RM2.63, for market capitalisation of RM591.98 million.
However, the revised offer price of RM2.90 is at a discount of 16.4% over Hunza’s net asset per share of RM3.47 as at March 31.
Hunza has fared well in terms earnings, for the nine month period ended March 31. The property firm’s net profit had nearly doubled to RM25.75 million during the financial period under review, compared with RM13.48 million. Revenue jumped to RM146.2 million, from RM101.9 million. Earnings per share ballooned to 7.6 sen, from 4.26 sen.
To recap, in March, Khor Teng Tong Holdings expressed its intention to take Hunza private, through an SCR.
Currently, Khor Teng Tong Holdings and its parties acting in concert, collectively hold a 59% stake in Hunza.
Hunza’s other substantial shareholders are Lembaga Tabung Haji which owns 7.28%, and Yayasan Bumiputra Pulau Pinang which owns 6.45%.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)