BUSINESS

SHARES OF SCIENTEX, DAIBOCHI UP ON VOLUNTARY TAKEOVER OFFER

14/09/2021 10:58 AM

KUALA LUMPUR, Sept 14 -- Shares of Scientex Bhd and Daibochi Bhd went up by 2.85 per cent and 12.55 per cent, respectively, in the early trade on Tuesday, following Scientex’s voluntary takeover offer of Daibochi to take the latter private.

At 9.45 am, Scientex’s shares rose by 13 sen to RM4.70, with 449,000 shares transacted, while Daibochi’s share price was 30 sen higher at RM2.69 with 4.57 million shares traded.

Trading of both Scientex and Daibochi’s shares were suspended on the Main Market of Bursa Securities from 9 am to 5 pm yesterday.

In a filing with Bursa Malaysia today, Scientex said it is proposing to acquire the remaining 124.78 million shares or 38.12 per cent of Daibochi shares not owned by Scientex and 95.8 per cent of the warrants for RM345.3 million.

The company said the acquisition would be funded via a combination of internally generated funds and bank borrowings, with the indicative funding ratio being 50:50.

Scientex, which currently holds 61.88 per cent of Daibochi’s voting shares, said it does not intend to maintain the latter’s listing status.

In a note today, Kenanga Research said it believes the offer price of RM2.70 for Daibochi’s shares is fair, as it is only four per cent higher than its back-of-the-envelope fair value calculation of RM2.60.

“The privatisation of Daibochi should provide Scientex with greater control to streamline its business operations.

“We maintain our ‘market perform’ call on Scientex with a higher target price of RM4.34 (from RM3.96) after the privatisation on earnings accretion,” it said.

-- BERNAMA

 

 


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