YEE LEE Corp Bhd shares saw active trading on Bursa Malaysia after major shareholders, who own a combined 89.94% stake in the company, launched a second attempt to acquire the remaining shares.
At 12.30pm, the counter rose four sen to RM2.06 with 124,100 shares changing hands.
Yee Lee’s founder and executive chairman Datuk Lim A Heng, Datin Chua Shok Tim, Lim Ee Young and Langit Makmur Sdn Bhd (joint offerors) have announced their intention to undertake an unconditional voluntary takeover offer to acquire the remaining 10.06% or 19.3 million shares in Yee Lee for a cash offer price of RM2.06 per share.
The first takeover offer from Yee Lee was announced a year ago.
Public Investment Bank said the current takeover price is 11.5% lower than the previous offer price of RM2.33, hence the shareholders might be reluctant to take up the offer.
“However, we opine that the current offer is fair, given that it is at a slight premium to our 12-month target price of RM1.96 (book value as at Dec 31, 2019 is RM3.38 per share).
“Furthermore, the trading volume of Yee Lee’s shares has been thin and this offer gives shareholders the opportunity to cash out,” it said in a note.
Public Investment Bank said the joint offerors will only require a minimum of 0.06% of Yee Lee’s shares to meet the 90% threshold to trigger a compulsory acquisition. — May 13, 2020, Bernama
