Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on June 4, 2019

KUALA LUMPUR: Inter-Pacific Securities Sdn Bhd has recommended Milux Corp Bhd shareholders and non-interested directors to reject the 80 sen per share offer by Topspike Holdings Sdn Bhd and Asia New Venture Capital Holdings Sdn Bhd.

In an independent advice circular filed yesterday, Inter-Pacific said the offer is unfair at a discount of 14 sen or 14.89% to the group’s realisable net asset value of 94 sen per share.

It also viewed the offer as unreasonable, given the joint offerors intend to maintain the kitchen, gas and electrical appliances manufacturer’s listing status. Therefore, shareholders will still be able to realise their investments in the company’s shares on the open market, after the closing date.

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

It noted Milux shares are relatively illiquid, as their 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 of small blocks of Milux shares may still have an opportunity to dispose of their shares on the open market, subsequent to the closing date, as the ultimate offerors and joint offerors intend to maintain Milux’s listing status on Bursa Securities’ Main Market,” said Inter-Pacific.

Topspike and Asia New Venture issued the conditional mandatory takeover 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. Of the total stake acquired, Topspike owns a 29.78% stake and Asia New Venture the remaining 17.05%.

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

Milux, untraded yesterday, was last traded at 78.5 sen, with a market capitalisation of RM42.71 million.

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