Thursday 28 Mar 2024
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KUALA LUMPUR (Dec 9): The takeover offer of Citaglobal Bhd (formerly known as WZ Satu Bhd) at 19 sen per share is deemed not fair and not reasonable, according to independent adviser DWA Advisory.

In a circular note on Friday (Dec 9), DWA Advisory said the offer price of 19 sen represents a discount of 5.82 sen to the estimated fair value of Citaglobal shares of 24.82 sen based on a sum-of-parts valuation (SOPV). It also represents a discount of 5.44 sen to the estimated diluted fair value of Citaglobal shares of 24.44 sen per share, based on the SOPV method.

The independent adviser also deemed the offer not fair as the offer price represents a discount ranging from 4.2 sen to 11.5 sen over the five-day, one-month, three-month, six-month and 12-month volume weighted average market prices of Citaglobal shares up to and including LFTD1 (June 14), LFTD 2 (Nov 7) and latest practicable date (Dec 2).

On the reasonableness of the offer, DWA Advisory said holders will still be able to participate in the trading of Citaglobal securities, as the company will remain listed on the Main Market.

"We are of the view that the offer is not reasonable as Citaglobal securities will remain tradable on the Main Market of Bursa Securities and hence, the holders will still have the opportunity to realise their investment in Citaglobal securities in the open market after the closing date (although there is no assurance that Citaglobal securities will continue to trade at the current price levels and trading volume after the closing date)," said the independent adviser.

Hence, DWA Advisory advised the holders to reject the offer.

It was reported on Nov 9 that new major shareholders — TIZA Global Sdn Bhd, Citaglobal executive chairman and president Tan Sri Mohamad Norza Zakaria, and persons acting in concert (PACs) — gave a takeover offer at 19 sen per share to the minority shareholders for the remaining shares in Citaglobal, after acquiring a collective stake of over 50% in the group.

They had acquired the majority stake in the group via the issuance of 736.84 million new shares at the same price of 19 sen per share. Following the completion of the acquisition, the collective shareholding of TIZA Global, Norza and PACs in Citaglobal, increased from 206.46 million shares (18.11% stake) to 943.31 million shares (50.27% stake).

Citaglobal's share price traded up half a sen or 2% to 25.5 sen as of 3.24pm on Friday, giving the group a market capitalisation of RM478.7 million.

Edited ByLam Jian Wyn
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