Wednesday, April 17, 2013

The Independent Advisor For MBF Speaks Again....

Posted recently: If The OFFER is NOT FAIR, how can it be REASONABLE...

On theSunDaily Business:

  • MBf take-over offer not fair but reasonable
    Posted on 25 March 2013 - 10:12pm
    Last updated on 25 March 2013 - 10:51pm

    PETALING JAYA (March 25 ,2013): The offer for the shares and warrants of MBf Holdings Bhd by a consortium of three companies led by major shareholder Tan Sri Ninian Mogan Lourdenadin, are deemed not fair but reasonable, according to independent adviser Affin Investment Bank Bhd.

    "However, we are of the view that the offer for the shares and the warrants are reasonable based on our evaluation and also taking into consideration that there have been no alternative offers received to date," it said, advising that shareholders and warrant holders accept the offer.

    In an independent advice circular yesterday, Affin Investment said the offer for the shares is not fair, given that the share offer price is below the derived valuation range of MBFH shares of between RM2.45 and RM3.20.

    The offer represents a 30.6% and 46.8% discount to the adjusted net asset range of the group. The offer for the warrant is also not fair, given that the warrant offer price is derived by reference to the share offer price.

    Tor Pte Ltd, Nadin Holdings Sdn Bhd, Impact Action Sdn Bhd and Market Share Investment Ltd through Hong Leong Investment Bank Bhd has proposed to acquire all the remaining shares in MBf Holdings and all the remaining warrants which are not already held by the joint offerors for RM1.70 per share and RM0.70 per warrant

    Affin Investment Bank said the sale of MBF Cards was a loss of significant contribution to the group's profitability.

    The fact that the group's business is largely concentrated in the South Pacific Island, which are perceived as remote markets, following the disposal of the MBF Cards, was also seen as a negative point.

    The heavy losses incurred by the group's shipping segment since FY ended Dec 31, 2010 which had drained the group's cash reserves, was another.

    MBf's revised offer will be open for acceptance until 5pm on April 3.
They told the minority shareholders to ACCEPT the deal which is unfair.....

MBF revised the offer UPWARDS to RM1.775 per MBfH share and 77.5 sen per warrant.

Guess what the INDEPENDENT ADVISOR has to say this morning...

Also from theSunDaily:
  • MBfH advisor recommends acceptance of 2nd revised offer
    Posted on 17 April 2013 - 05:40am

    PETALING JAYA (April 17, 2013): Affin Investment Bank Bhd, which is the independent advisor to the minority shareholders of MBf Holdings Bhd (MBfH), has given the thumbs-up to MBfH's controlling shareholder and group CEO Tan Sri Dr Ninian Mogan Lourdenadin's latest attempt to take the group private.

    In a filing with Bursa Malaysia yesterday, MBfH said while Affin Investment had deemed the second revised offer of RM1.775 per MBfH share and 77.5 sen per warrant "not fair but reasonable", it is advising its shareholders to accept it.

    "The board (save for the interested directors) concurs with the recommendation of Affin Investment. Accordingly, the board's comments, opinions and recommendation as contained in the Independent Advice Circular remain unchanged," said MBfH.

    The joint offerors for the rest of the MBfH shares are Tor Pte Ltd, Nadin Holdings Sdn Bhd, Impact Action Sdn Bhd and Market Share Investments Ltd. Ninian has accumulated 98.51% or 568.8 million shares in MBfH.

    In a separate filing, MBfH said the joint offerors will still require further acceptances of 2.4 million shares or 0.42% to invoke the compulsory acquisition of the remaining MBfH shares.

    "If it fails, shares not held by the joint offerors as at the close of the offer on April 26, 2013 may not be compulsorily acquired."


David Koay said...

This is Malaysia's specialty among advisers now. Unfair but reasonable.