KUALA LUMPUR (Sept 7): Minority shareholders of Oversea Enterprise Bhd (OEB), which owns and operates the Oversea restaurant chain, have been advised to accept the takeover offer by Datuk Chai Woon Chet, the managing director and substantial shareholder of Anzo Holdings Bhd, for the rest of the shares in the group for 30 sen per share.
In its independent advice circular to OEB shareholders on Bursa Malaysia today, UOB Kay Hian Securities (M) Sdn Bhd (UOBKH) recommended that shareholders accept the offer as it finds the offer “fair” and “reasonable”.
According to the independent adviser, the offer is deemed fair as the 30 sen offer price is higher than the estimated fair value per share of 21 sen, representing a premium of 42.86%, and also above the market price of OEB’s shares as at the one-month, three-month, six-month, one-year, two-year and three-year volume weighted average price (VWAP).
It also pointed out that the offer is reasonable as it provides an exit opportunity for the shareholders, especially those holding large blocks of shares, given the low trading liquidity and the absence of competing offers.
Shareholders may have limited opportunities to dispose of their offer shares in the open market, said UOBKH.
On Aug 6, OEB announced that Chai had entered into a sale and purchase agreement with five parties to buy a 62.37% stake in the group for RM45.37 million.
This triggered a mandatory takeover offer, which means that Chai has to acquire all the remaining shares not held by him, although he intends to maintain OEB’s listing status on the bourse.
The offer caused a surge in OEB’s share price to an all-time closing high of 85.5 sen on Aug 12.
At noon break today, OEB shares were unchanged at 70.5 sen, bringing a market capitalisation of RM170.97 million. A total of 38,300 shares were traded.