KUALA LUMPUR (Feb 25): Tenaga Nasional Bhd has upped its offer price for Integrax Bhd by 50 sen to RM3.25 per share, after one of Integrax’s substantial shareholders, Perak Corp Bhd, said no to its original offer of RM2.75 on Monday.
At the higher offer price of RM3.25, Tenaga, which holds 22.12% of Integrax (fundamental: 1.65; valuation: 0.6), will now have to fork out RM761.38 million to acquire the remaining shares it doesn’t yet own in the port operator. This works out to an additional RM117.14 million, on top of the earlier-budgeted amount of RM644.24 million.
In a filing to Bursa Malaysia this evening, Tenaga (fundamental: 1.3; valuation: 1.8) said the offer price revision was arrived at, based on Integrax's audited consolidated net assets per share attributable to equity holders of RM1.97 as at Dec 31, 2012, and RM2.06 as at Dec 31, 2013.
"The revised consideration of RM3.25 per offer share represents a price to book ratio of 1.65 times and 1.58 times, respectively," said Tenaga, noting the revised offer at RM3.25 will expire on March 31.
A report published by The Edge Financial Daily this morning said Tenaga was expected to apply to Bursa for an extension of its offer, two days before the deal expires on Friday. The report said the extension would signal a revision to the original offer price.
Perak Corp (fundamental: 1.9; valuation: 1.2) owns 15.74% of Integrax, while Amin Halim Rasip holds a larger chunk at 23.78%.
Amin, who is the deputy chairman of Integrax, had earlier also rejected the RM2.75 offer price by Tenaga, saying the real value of the company should be more than RM5 per share.
Integrax closed 2 sen or 0.67% higher at RM3.02 today, with a market capitalisation of RM902.42 million.
(Notes: 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.)