KUALA LUMPUR (June 3): Inter-Pacific Securities Sdn Bhd has recommended that Milux Corp Bhd shareholders and non-interested directors reject the 80 sen per share offer put out by Topspike Holding Sdn Bhd and Asia New Venture Capital Holdings Sdn Bhd.

In an independent advice circular filed today, Inter-Pacific said the offer is not fair, noting that the offer price represents a discount of 14 sen or 14.89% to the realisable net asset value of 94 sen per share.

It also viewed the offer as not reasonable, given the joint offerors intend to maintain the listing status of the kitchen, gas and electrical appliances manufacturer, and therefore, shareholders will still be able to realise their investments in the company’s shares in the open market, after the closing date.

However, Inter-Pacific said there is no guarantee that the market price of Milux shares will continue to trade at current price levels.

It noted that Milux shares are relatively illiquid, as its average monthly trading volume of 0.55% is lower than the average monthly trading liquidity of the Bursa Malaysia Consumer Products and Services Index of 3.48%.

“However, holders who hold small blocks of Milux shares may still have opportunity to dispose their shares in the open market, subsequent to the closing date, as the ultimate offerors and joint offerors intend to maintain the listing status of Milux on the Main Market of Bursa Securities,” Inter-Pacific said.

Topspike and Asia New Venture issued the conditional mandatory take-over offer on May 3, after acquiring 25.48 million shares or 46.83% stake in Milux for RM20.39 million or 80 sen per share.

Out of the total stake acquired, Topspike owns a 29.78% stake, while Asia New Ventures owns the remaining 17.05% stake.

Topspike is jointly owned by Datuk Wira Ling Kak Chok (50%+1 share) and Gan Boon Lay (50%), while Asia New Ventures is a wholly-owned subsidiary of Asia Capital Fund Ltd, a private fund company. Yee Carine owns an 80% stake in Asia Capital Fund, while the remaining 20% is held by Teh Sok Hoon.

Milux, which was untraded today, was last traded at 78.5 sen, giving it a market capitalisation of RM42.71 million.