KUALA LUMPUR: AllianceDBS Research deems Dutch company, Jacobs Douwe Egberts BV’s (JDE) offer to take over OldTown Bhd at RM3.18 a share to be reasonable and fair.
“The offer price of RM3.18 is in line with our RM3.15 target price for the group. We maintain “buy” and advocate investors to accept the offer once the preconditions are met,” the research house said.
OldTown announced that the group has received a pre-conditional cash offer for all the issued ordinary shares of the company by Jacobs Douwe Egberts Holdings Asia NL. B.V., an indirect wholly-owned subsidiary of JDE.
The offer will be subject to the preconditions of green lights obtained from the Competition Commission of Singapore without conditions or on conditions reasonably satisfactory to JDE, and the offer does not violate any other appropriate anti-trust authorisations and if yes, approvals will be obtained from the relevant authorities going forward.
The offer will not be made to shareholders of Oldtown until the preconditions highlighted above have been satisfied latest by August 11, 2018.
JDE intends to privatise OldTown and will not maintain its listing status on Bursa Malaysia.