Thursday 28 Mar 2024
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KUALA LUMPUR (Apr 17): The shareholders of Perduren (M) Bhd, which is in the midst of a mandatory takeover offer by Datuk Mazlin Md Junid and Datuk Kamaluddin Abdullah, son of former prime minister Tun Abdullah Ahmad Badawi, have been advised to vote in favour of the group’s RM81.5 million asset disposal at its upcoming extraordinary general meeting (EGM) on May 18.

In Perduren (fundamental: 0.1; valuation: 1.1)’s filing with Bursa Malaysia today, Affin Hwang Investment Bank Bhd, which is the independent adviser for Perduren’s proposed disposals, said the corporate exercises are ‘fair and reasonable’ and ‘not detrimental’ to shareholders.

"We noted that the proposed disposals would result in the cessation of future revenue contribution by the subject companies. However, the proceeds arising from the proposed disposals will enable the group to undertake new investments and enhance the income-generating capability of the group when the opportunity arises," it said.

“Accordingly, we recommend that you vote in favour of the resolutions pertaining to the proposed disposals to be tabled at the forthcoming EGM,” Affin Hwang said in the circular published by Perduren.

The independent advice was signed off by Affin Hwang’s head of corporate finance Johan Hashim and director of corporate finance Syed Zulfida Syed Harun.

If shareholders' approval is granted at the upcoming EGM, the proposed disposal should be completed around end of May.

To recap, Perduren had in early December 2014 proposed to dispose of three of its wholly-owned subsidiaries to Jerusan Indah Sdn Bhd, an entity equally owned by Tan Sri Law Tien Seng and Puan Sri Saw Geok Ngor.

The three subsidiaries, collectively worth RM73.2 million, are Advantage Equity Sdn Bhd (AESB), Balance Focus Sdn Bhd (BFSB) and Grand Sentosa Hotel Management Services Sdn Bhd (GSHSB).

On top of that, Perduren also proposed to dispose of its 30% interest in Landmark Zone Sdn Bhd (LZSB), which is developing the ‘Shamelin Star’ mixed development project in Taman Shamelin, to Meridian Hectares Sdn Bhd for RM8.3 million, cash.

Kamaluddin and Mazlin are undertaking the MTO for the remaining 30.7% of Perduren that they do not own.

The mandatory offer was triggered when Kamaluddin and Mazlin acquired 93.5 million shares, which represented 69.3% of the issued share capital of Perduren, at RM1.60 per share for RM149.6 million from Law and Saw via TS Law Group Sdn Bhd.

Perduren’s share price closed up six sen or 2.96% at RM2.09 today, giving it a market capitalisation of RM281.98 million.

(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.)

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