KUALA LUMPUR: Genting Bhd will not be required to revise its RM2.35-a-share offer for Genting Malaysia Bhd, as neither the company nor its concert parties had bought any shares above that price during the six-month offer period that ended on Nov 13.
Genting has also triggered a mandatory take-over offer for Genting Malaysia after breaching the two per cent acquisition threshold within the period, effectively replacing the earlier unconditional voluntary offer under the takeover rules.
AmInvestment Bank Bhd, Genting’s principal adviser, said in a filing with Bursa Malaysia that there was therefore no requirement for the offer price to be revised in accordance with the Rules on Take-Overs, Mergers and Compulsory Acquisitions.
The offer, which has now become unconditional, will continue to be undertaken solely by Genting and its parties acting in concert.
As at 5pm today, Genting and its concert parties collectively held 3.23 billion shares, or about 57 per cent of Genting Malaysia’s total issued shares, excluding treasury shares.
The investment bank also announced that the closing time and date for acceptance of the offer has been extended from 5pm on Nov 24 to 5pm on Dec 1. All other terms and conditions remain unchanged.
The RM2.35-per-share voluntary takeover offer was made on Oct 13, when Genting held a 49.36 per cent stake in its 49.36 per cent-owned subsidiary.
The offer first became unconditional on Nov 3 after Genting’s stake surpassed the 50 per cent threshold, and will continue to be undertaken solely by Genting and its parties acting in concert.
Earlier, Kenanga Investment Bank Bhd, acting as the independent adviser to Genting Malaysia’s minority shareholders, recommended that they reject the RM2.35-a-share offer, describing it as both “not fair” and “not reasonable”.
Kenanga valued Genting Malaysia at between RM3.48 and RM3.77 per share, indicating that the offer represented a 32 to 38 per cent discount to its estimated intrinsic value.
It also noted that the stock is relatively liquid, giving investors the opportunity to realise their investment on the open market.
© New Straits Times Press (M) Bhd
