MCT shareholders told to reject unfair, unreasonable takeover offer

KUALA LUMPUR (Feb 5): MCT Bhd shareholders have been told to reject the takeover bid launched by Philippines-based property developer Ayala Land Inc's unit Regent Wise Investments Ltd, which has been deemed "not fair and not reasonable" by independent adviser Kenanga Investment Bank Bhd (Kenanga IB).

On Jan 2, Regent Wise bought 230.12 million shares or a 17.24% stake in MCT from Tan Sri Goh Ming Choon for RM202.5 million or 88 sen per share.

In an independent advice circular today, Kenanga IB said in view that the offer price of 88 sen is lower than and represents a discount of 36.23% over the estimated fair value per MCT share of RM1.38, the offer is deemed not fair.

The offer is also not reasonable, considering the offeror intends to maintain MCT's listing status, as well as the liquidity of MCT shares, with an average daily trading volume of 73.77 million for the past 12 months, the circular said. 

"Premised on these and the evaluation by Kenanga IB as a whole, Kenanga IB is of the opinion that the offer is not fair and not reasonable. Accordingly, we advise and recommend that the holders reject the offer," the research house added. 

At 3.10pm, MCT shares were unchanged at 87.5 sen, with 229,000 shares done, bringing it to a market capitalisation of RM1.17 billion. — theedgemarkets.com

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