Minorities advised to accept UM Land privatisation offer at RM2.50 per share

KUALA LUMPUR (Aug 13): Affin Investment Bank Bhd, acting as independent advisor to minority shareholders of United Malayan Land Bhd (UM Land), has recommended to minority shareholders to accept the offer by Tan Sri Syed Mokhtar Al-Bukhary and a group of investors acting in concert to privatise UM Land at RM2.50 per share.

Syed Mokhtar, Datuk Ng Eng Tee and associates reportedly hold a combined 77.52% stake in UM Land. They launched the takeover offer in early July to buy over the rest of the rest of the 22.48% or 67.81 million shares not yet owned by them for a cash consideration of RM2.50 per share.

In a statement to Bursa Malaysia Monday, Affin Investment said the offer was “fair and reasonable”.

It said, among others, the offer price represents a premium to the closing market price on July 11, 2012, and the offer price reflects the fundamental value of the company.