KUALA LUMPUR: MainStreet Advisers Sdn Bhd, an independent adviser for Rexit Bhd, says the takeover offer from the latter's main shareholders is unfair and unreasonable.
The offer came after Datuk Seow Gim Shen, Metaco Asset Holdings Sdn Bhd and Bemas Holdings Sdn Bhd acquired an aggregate of 92.27 million Rexit shares, or 53.27 per cent of its total issued shares.
In a filing with Bursa Malaysia today, MainStreet said the evaluation of the fairness of the offer relies on the discounted cash flow (DCF) valuation method.
The offer price of 85 sen per share is lower by 2.8-8.4 sen, or roughly 3.19 per cent to 8.99 per cent, compared to the estimated value per Rexit share, which ranges from 87-93 sen.
"Based on the above assessment, we are of the opinion that the offer is not fair," MainStreet said.
"Although the offer price is higher than the six-month and one-year volume-weighted average prices (VWAPs) of Rexit shares up to the last trading day (LTD), ranging from 2.9-27.6 sen (0.34 per cent to 3.36 per cent), it still represents a discount compared to the last transacted market price of Rexit shares as of the LTD and the VWAPs over various periods leading up to the LTD, ranging from 18.5-70 sen (2.13 per cent to 7.61 per cent)," it said.
It is also discounted compared to the last transacted market price as of the LPD and the five-day VWAP up to the LPD, ranging from 3.0-10.72 sen (3.41 per cent to 11.20 per cent).
MainStreet noted that it is not the intention of Rexit's substantial shareholders to maintain its listing status on the ACE Market of Bursa Malaysia.
"Nonetheless, the decision to be made in respect to the offer would rest on the individual risk appetite and specific investment requirements of the holders.
"Holders should be mindful that there may be continuous fluctuations in the market prices of Rexit dhares," it said.
As of 2:58 pm, Rexit's shares rose 5.0 sen or 0.57 per cent to 88.5 sen