Subur Tiasa Soars as Much as 24 Percent as Independent Advisor Says Major Shareholder’s Acquisition Offer Not Fair

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Subur Tiasa Holdings Bhd surged as much as 21 sen or 24.14 percent to RM1.08 — its highest level in more than three and a half years — on Monday after independent advisor DWA Advisory Sdn Bhd said the unconditional mandatory takeover offer from Subur Tiasa’s largest shareholder Tiong Toh Siong Enterprises Sdn Bhd (TTSE) is “not fair and not reasonable.”

At 4.34pm, Subur Tiasa, an oil palm plantation owner and manufacturer of plywood, particle boards, and sawn lumber, saw its stock cut roughly half of its gains to trade at 99.5 sen — still up 12.5 sen or 14.37 percent, with 3.76 million shares traded.

DWA Advisory claimed last Thursday that TTSE’s offer was not reasonable because it reflected a discount of RM3.66 to RM3.84 (about 84.92 percent to 85.52 percent) to the estimated value of each Subur Tiasa share of between RM4.31 and RM4.49, using the sum-of-parts valuation technique.

Additionally, DWA Advisory stated that the offer was not reasonable because Subur Tiasa shares would remain tradeable on the main market and holders would have the option to sell their Subur Tiasa shares at prevailing market values in the open market following the offer’s conclusion.

“Based on the foregoing and our judgement, we believe that the offer is neither fair nor reasonable. As such, we propose that holders reject the offer,” it stated.

On September 20, TTSE commenced an unconditional obligatory takeover offer for all remaining shares of Subur Tiasa at a cash offer price of 65 sen per share.

TTSE and related parties are assumed to own 129.15 million shares, or 68.58 percent of Subur Tiasa.

The offerors, led by Tan Sri Tiong Hiew King, did not extend the mandatory take-over offer to acquire all remaining Subur Tiasa shares when the offer obligation was triggered on Feb 20, 2020, when TTSE acquired 16.89 percent of Subur Tiasa shares at a price of 48 sen each from Asanas Sdn Bhd, Insan Anggun Sdn Bhd, Nustinas Sdn Bhd, and Raya Abadi Sdn Bhd, bringing the collective shareholdings of the offerors to 57.63 percent, up from 40.74 percent.

Published by Zack Baharum

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