Published: Friday March 8, 2013 MYT 1:51:00 PM
Updated: Friday March 8, 2013 MYT 2:23:44 PM

Independent adviser: Petronas offer for MISC 'not fair but reasonable' (Update)

By Joseph Chin

KUALA LUMPUR: AmInvestment Bank Bhd, the independent adviser to the minority shareholders of MISC Bhd, has described Petroliam Nasional Bhd's (Petronas) takeover offer as "Not Fair" but "Reasonable".

In a circular to shareholders issued on Friday, it said there were no competing offer for MISC shares or any other offer to acquire the assets and liabilities of the MISC.

It also said Petronas' offer at RM5.30 per share provided shareholders with an opportunity to realise their investment which was a premium of between 19.64% and 27.10% over the five day to three-month volume weighted average market price.

In terms of valuation, AmInvestment Bank said the indicative sum-of-parts valuation (SOPV) of MISC's business ranged from RM5.69 to RM6.10 per MISC share.

“The offer price translate to a discount of between 6.9% and 13.1% to the range of the indicative SOPV attributable to each MISC share,” it said.

It said based on the Malaysian Code on Takeovers and Mergers 2010, the offer price of RM5.30 is “not fair” as the indicative SOPV of the MISC Group is abover the offer price.

AmInvestment explained that it assessing the reasonableness of the offer, it had considered the risks and challenges of the shipping industry.

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