KUALA LUMPUR (Sept 18): NuEnergy Holdings Bhd's (KL:NHB) minority shareholders should accept the “not fair, reasonable” takeover offer from its single largest shareholder, Agrobulk Holdings Sdn Bhd, according to independent adviser Sierac Corporate Advisers Sdn Bhd.
Sierac said the 60 sen offer for NuEnergy shares is “not fair” as it is 47% below the estimated fair value of RM1.13. However, it called the offer “reasonable” since it is 20% above the last traded price on Aug 15 and 4% to 5% higher than recent average prices.
The adviser also highlighted that NuEnergy shares have not traded above the offer price in the past 12 months. As such, the proposal provides an opportunity for shareholders to realise their investment at a premium without affecting market prices, given the stock’s limited liquidity.
“Accordingly, we recommend the holders to accept the offer,” Sierac said.
Agrobulk launched a conditional voluntary takeover offer on Aug 18 to acquire 130.59 million shares, or a 69.13% stake, in the solar energy firm — formerly known as ILB Group Bhd — at 60 sen per share.
Agrobulk currently owns 58.31 million shares, or a 30.87% stake. Based on the offer price, the takeover values the remaining stake at RM78.35 million.
Agrobulk is 61.42%-owned by Tang & Co Sdn Bhd, which is majority-owned by Lee May Lin. Other substantial shareholders of Agrobulk include KTC Brothers Holdings Sdn Bhd (11.05%), Loo Joo Aun (7.31%) and Tan Chai Swan (6.04%).
Agrobulk intends to maintain NuEnergy’s listing on the Main Market of Bursa Malaysia.
NuEnergy shares ended 1.5 sen or 2.63% higher at 58.5 sen on Thursday, giving the group a market capitalisation of RM114.09 million.