Perak Corp seeks legal opinion on letter of demand by Integrax’s Amin

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KUALA LUMPUR: Perak Corp Bhd said it is currently seeking legal advice on the letter of demand (LOD) sent by Integrax Bhd’s co-founder Amin Halim Rasip over claims that the former should seek a minimum price offer of RM3.66 per Integrax share.

In a statement with Bursa Malaysia yesterday, Perak Corp confirmed that the company and its directors have received an LoD dated March 24 from Amin on “immediate steps to be taken to invite and procure offers of no less favourable terms and price”. Amin owns a 24.61% stake in Integrax.

Perak Corp (fundamental: 1.90; valuation: 2.40) said, “The company is currently seeking legal advice on the LOD and will take appropriate steps to address the issue.”

This was after Perak Corp board of directors’ recent decision to reaffirm its stance to seek approval from the group’s shareholders to vote in favour of disposing of its 15.74% stake in Integrax (fundamental: 1.65; valuation: 1.20) to Tenaga Nasional Bhd (TNB) (fundamental: 1.30; valuation: 1.80) for RM3.25 per share at the extraordinary general meeting (EGM) today.

Perak Corp’s board had announced that it was of the view that TNB’s offer for its entire stake was “superior”.

Perak Corp also said in the same announcement yesterday that it could not grant Amin’s request on having an additional resolution during the EGM today, “as the proposed modification and proposed addition of resolution would tantamount to a new business”.

It also noted that for a business to be transacted at an EGM, due notice to the shareholders of the company must be given at least 14 days before the meeting.

Under the proposed additional resolution, Perak Corp is required to invite further offers from TNB or any other party and seek a minimum price offer of RM3.66 per Integrax share. TNB held a 24.82% stake in Integrax as at March 19.

State-owned Perbadanan Kemajuan Negeri Perak is the single largest shareholder of Perak Corp with an effective equity interest of 52.9%, while Sime Darby Property Bhd has a 6.12% stake in Perak Corp.

Perak Corp shares dropped 0.35% to close at RM2.84 yesterday, with a market capitalisation of RM284 million, while Integrax’s counter closed unchanged at RM3.17, bringing a market cap of RM953.55 million. TNB’s share price also closed 0.28% lower at RM14.46, with a market cap of RM81.6 billion.

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This article first appeared in The Edge Financial Daily, on March 27, 2015.