Published: Wednesday February 13, 2013 MYT 1:29:00 PM
Updated: Wednesday February 13, 2013 MYT 2:05:40 PM

MISC gets more time to submit draft independent advice circular (Update)

KUALA LUMPUR: MISC Bhd has secured more time from the Securities Commission to submit the draft independent advice circular (IAC) to the regulator and also the board of directors and shareholders.

It said on Wednesday the SC had allowed its application to extend the date of submission of the draft IAC to the SC from Feb 20 to Feb 25.

MISC added the SC also approved the extension to submit the IAC to the directors and shareholders from March 4 to March 8.

Petroliam Nasional Bhd had offered RM5.30 per share to buy out minority shareholdings in MISC with the intention of taking the latter private.

At midday, MISC's share price was up four sen to RM5.35. There were 440,500 shares done at prices ranging from RM5.31 to RM5.37.

Meanwhile, Standard & Poor's Ratings Services said its ratings on MISC (BBB/Stable/--; axA/--) and Petronas (foreign currency A-/Stable/--; local currency A/Stable/--; axAAA/--) were unaffected by Petronas' proposed conditional takeover.

"The proposed transaction supports our assessment of MISC's strategic importance to its parent Petronas. In addition, the transaction is unlikely to have any effect on Petronas' financial risk profile. Petronas currently owns about 63% of MISC," it said.

S&P said the rating on MISC incorporated a three-notch uplift from the company's stand-alone credit profile of 'bb' to reflect strong business and financial support from Petronas.

"As a majority-owned subsidiary, MISC is already consolidated in Petronas' accounts. We believe that Petronas has sufficient financial resources to complete the takeover. Petronas' financial risk profile is 'minimal' and its liquidity is 'strong," as our criteria define these terms," said the rating agency.

Earlier, M&A Securities recommended that investors reject Petronas' offer to take private the shipping firm since the offer price of RM5.30 was -8.9% below its fair value of RM5.77.

However, UOB KayHian recommended accepting the general offer for short-term investors, although in the longer term, it noted that MISC could benefit from a global cyclical recovery and potential demand for intercontinental transportation of shale gas produced in North America.

On its part, Hong Leong Research advised shareholders to accept the offer, as it did not expect MISC's share price to recover to the RM5.30 level in the near term, given the continued oversupply concerns on the petroleum and chemical shipping industries.

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