KUALA LUMPUR (Nov 7): Mercury Securities Sdn Bhd, the independent adviser to the 54.95% Malaysia Packaging Industry Bhd's (Maypak) takeover offer by Taisei Lamick Co. Ltd, has recommended that shareholders accept the revised offer of RM1 although it deemed the offer not fair.

On Oct 17, Mercury had advised shareholders to reject the takeover offer, priced at 65 sen per share as it was a significant discount of 63.07% over the estimated revalued net asset value (RNAV) per Maypak share of RM1.76.

On Oct 31, Taisei Lamick revised the offer price to RM1 which would remain open for acceptance till 5pm on Nov 15.

In supplemental independent advice circular filed via Bursa Malaysia today, Mercury said the revised offer price represents a significant premium ranging from 99.96% and 122.22% to the closing market price or volume weighted average market price (VWAPs) of the Maypak Shares as at the sale and purchase agreement (SPA) last trading date (LTD) July 28, 2016.

Mercury reiterated that the shares have never traded at or higher than the revised offer price for the past 10 years up to the LPD and that it represents a lower discount of 43.18% over the estimated RNAV per share of RM1.76.

It noted that the revised offer price is higher than the market price but is still lower than the value of the offer shares, thus viewing it as not fair.

However, it considered it reasonable because it provided an exit opportunity to holders to realise its investment in cash.

Maypak’s board of directors board (save for Mr Mitsuru Hiramuki and Mr Akihiko Takano, who are deemed interested in the offer) concurred with Mercury on the revised offer deemed not fair but reasonable, and recommended that shareholders accept the offer.

On Sept 15, Maypak announced it received a takeover offer from Japan-based Taisei Lamick after an SPA signed with it in July to purchase a stake of 23.1 million shares became unconditional.

Hence, Taisei Lamick was obliged to extend a mandatory takeover offer to acquire all the remaining shares in Maypak it did not own.

RHB Investment Bank Bhd is representing Taisei Lamick, which manufactures film packaging materials for food products and consumer goods, in the corporate exercise.

At 11.29am, Maypak grew 0.5% or half sen to RM1 after paring gains on thin trade of 9,300 shares for a market capitalisation of RM41.8 million.