KUALA LUMPUR (July 19): China’s Hengan International Group Co Ltd’s unconditional mandatory takeover offer to acquire the remaining stake it doesn't own in Wang-Zheng Bhd has been rejected by the latter's shareholders.

At an offer price of RM1.14 per offer share, Hengan only obtained acceptances for 3,000 shares at the closing of the offer today, said AmInvestment Bank on behalf of Hengan in a notice filed with Bursa Malaysia.

That leaves Hengan with the same 50.4% stake in Wang-Zheng, which it acquired after buying 80 million shares in the company in June from the largest shareholder then, Wang-Zheng Resources Sdn Bhd, and three others.

On July 10, independent adviser Affin Hwang Investment Bank Bhd had deemed the takeover offer “not fair and not reasonable” and advised shareholders to reject Hengan's offer as Wang-Zheng shares were relatively liquid and would remain traded on the Main Market of Bursa Securities.

It said holders would have the opportunity to realise their investments in the open market after the closing date, said Affin Hwang.

The offer price represented a discount of 25.49% to the last traded price of RM1.53 as at the latest practicable date (LPD), Affin Hwang said.

Shares in Wang-Zheng slid two sen or 1.43% to close at RM1.38, for a market capitalisation of RM218.84 million.