Friday 29 Mar 2024
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This article first appeared in The Edge Financial Daily on September 24, 2019

KUALA LUMPUR: Independent adviser Mercury Securities Sdn Bhd has recommended that Lien Hoe Corp Bhd shareholders reject Christine Holding Sdn Bhd’s proposal to buy the remaining shares in Lien Hoe at 25.5 sen each because the takeover offer is “not fair” and “not reasonable”.

Mercury Securities said in a circular to Lien Hoe shareholders that the offer is not fair because the offer price is lower than the estimated value and historical market price of Lien Hoe shares. The independent adviser derived an estimated value of RM1.50 each for Lien Hoe shares.

“The offer is not reasonable as the Lien Hoe shares will remain tradable on the Main Market of Bursa Securities and hence the holders will still have the opportunity to realise their investment in the Lien Hoe shares at the prevailing market price on the open market after the closing date,” Mercury Securities added.

Lien Hoe first announced the takeover offer on Aug 21 this year. On that day, the property developer said it had received a notice of the conditional mandatory takeover offer from Christine Holding, which already owned an approximately 46.1% stake in Lien Hoe.

Lien Hoe’s share price remained unchanged at 25 sen yesterday. The stock has been trading between 22 sen and 35 sen in the past 52 weeks.

 

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