Independent adviser deems Rex Industry takeover offer ‘not fair and not reasonable’

PETALING JAYA: cfSolutions, an independent advisor, has deemed the conditional mandatory takeover offer for Rex Industry Bhd to be "not fair and not reasonable."

It has advised the company's non-interested directors, which also agreed with its advice; and other minority shareholders to reject the offer.

"The non-interested directors concur with the evaluation and recommendation of cfSolutions that the offer is not fair and not reasonable. Accordingly, the non-interested directors recommend the holders to reject the offer," a circular to shareholders on Bursa Malaysia read.

The offer was made by the offeror ETA Industries Sdn Bhd at 10 sen per Rex share and 0.5 sen per Rex warrant.

The independent advisor said that the offer share price of 10 sen per offer share represents a discount of approximately 6 sen or 37.5% to the estimated value per Rex Share.

While it also said that the offer warrant price represents a discount of 2.5 sen or 83.3% against the theoretical value of a warrant of 3 sen as at the last trading day.

"Holders who wish to exit their investments in Rex can consider selling the offer securities in the open market if they are able to obtain a price higher than the offer price, net of transaction costs.

“Holders should note that the market prices of offer securities have been trading at or above the respective offer prices after the date of notice up until the latest practicable date," it said.