KUALA LUMPUR (June 28): Tasek Corp Bhd's minority shareholders have been advised to accept the takeover offer by Singapore-listed Hong Leong Asia Ltd (HLA) in a deal worth an estimated RM128.61 million, based on the offer price of RM5.50 for every ordinary as well as preference share.
In a circular to the stock exchange today, independent adviser Mercury Securities Sdn Bhd said that while the offer for the shares is reasonable, the offer in respect of the offer preference shares is not fair.
However, it said the offer in respect of the offer preference shares is reasonable.
"Accordingly, Mercury Securities recommends that you accept the offer in respect of both the offer ordinary shares and the offer preference shares," it said.
On May 28, Tasek said it had received an unconditional voluntary takeover offer from HL Cement (Malaysia) Sdn Bhd (HLCSB) and Ridge Star Ltd (RSL) — the two subsidiaries which HLA uses to control Tasek — to acquire the remaining shares they do not own in the cement maker.
Together, HLCSB and RSL presently hold 97.89 million ordinary shares in Tasek, representing 80.8% of the total issued and paid-up 121.14 million ordinary shares (excluding treasury shares). They also have 211,050 or 63% of Tasek's total issued and paid up 335,000 preference shares. This means the takeover will involve the remaining 19.2% ordinary shares and 37% preference shares.
Tasek's board is helmed by Kwek Leng Peck as its non-executive chairman. Kwek is also the executive chairman of HLA. Kwek joined Tasek's board in June 1984 and has been Tasek's chairman since April 2009.
Tasek said the offer price of RM5.50 per share represents a premium of 8.06% over the company's five-day volume-weighted average price, up to and including May 27, of RM5.09. It is also 8.91% more than the stock's closing price of RM5.05 yesterday, which gave it a market value of RM611.77 million.
In addition, it is a premium of 26.19% over the company's net assets per share of RM4.34 as at end-March this year.
According to Tasek, which is also involved in cement-related products and ready-mixed concrete primarily in Peninsular Malaysia, the joint offerors do not intend to maintain its listing status on completion of the takeover.
At 11.27am, Tasek dipped 0.18% or 1 sen to RM5.51 for a market capitalisation of RM681.15 million.