Takeover offer for Rex Industry deemed not fair

PETALING JAYA: cfSolutions, an independent adviser, 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, who 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 offerer ETA Industries Sdn Bhd at 10 sen per Rex Industry share and 0.5 sen per Rex Industry warrant.

The independent adviser said that the offer share price of 10 sen per offer share represented a discount of approximately six sen or 37.5% to the estimated value per Rex Industry share.

It also said that the offer warrant price represented a discount of 2.5 sen or 83.3% against the theoretical value of a warrant of three sen as at the last trading day.

“Holders who wish to exit their investments in Rex Industry 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 cost.

“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.

For its third quarter ended March 31, 2025, Rex Industry’s net loss widened to RM2.65mil from RM492,000 in the previous corresponding period, while revenue dipped to RM31.43mil from RM35.60mil a year earlier.