KUALA LUMPUR: Independent adviser DWA Advisory Sdn Bhd has urged furniture manufacturer Euro Holdings Bhd’s minority shareholders to reject the takeover offer by its three major shareholders.

DWA said the 44-sen-per-share offer is “not fair” as it is below market price and does not reflect the fair value of Euro Holdings shares vis-a-vis its realised net asset value.

“The trading of Euro Holdings shares had been relatively liquid for the past 12 months and the joint offerers have indicated their intention to maintain the listing status of the company,” DWA said yesterday.

“As such, the offer is not reasonable as there are insufficient reasons... to accept the offer,” it said.

According to the advisory firm, Euro Holdings chairman Datuk Seri Mohd Haniff Abd Aziz, group managing director Lew Fatt Sin and executive directors Law Sim Shee, Lew Hin and Teh Hock Toh had confirmed that they, too, would reject the offer.

The furniture manufacturer received a conditional mandatory takeover offer early last month from its director and majority shareholder Datuk Seri Choong Yuen Keong and two others, Datuk Tong Yun Mong and Tee Wee

Sien, to buy the remaining 52.3 per cent stake that they do not already own.

Collectively, they own about 42.39 million shares.

Earlier filings to Bursa Malaysia showed that Tee had sealed a share purchase agreement with Mohd Haniff to acquire a 12.35 per cent stake for RM4.2milion cash while Tong and Choong had separately bought 1.85 per cent and 2.09 per cent stakes for RM660,000 and RM746,240, respectively.

Euro Holdings had a market capitalisation of RM38.1 million as at the first quarter of this year and posted a gross profit of RM7.9 million on RM30.3 million revenue during the period.

The firm has a presence in Hong Kong, New Zealand, Australia and Saudi Arabia.

Euro Holdings shares edged up one sen to close at 66 sen yesterday.

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