Take over at 2.10.
Yesterday closing price:
Yield in 6 months: 2.10-1.90 / 1.90 = 10.5%
1 year - 22 % - good deal
PETALING JAYA: Adventa Bhd will hold an EGM for shareholders to decide on major investors Low Chin Guan and Mulberry Asia Fund II L.P.'s RM320.85mil, or RM2.10 per share, takeover offer.
In a statement, Adventa said the company's board of directors, save for Low, had “unanimously resolved to accept the revised offer and will be recommending it for shareholders' consideration” at an EGM.
Following this, Adventa would have to hire independent financial adviser to provide an opinion to its board of directors and shareholders on the fairness and reasonableness of the offer.
Adventa said the board had on July 9 received an offer from Aspion Sdn Bhd, a jointly-held vehicle of Low and Southern Capital Group, to acquire all the businesses of Adventa for RM320.85mil.
Adventa holders poised to gain RM1.70 per share
GLOVE maker Adventa Bhd is giving back RM1.70 per share to shareholders from the sale of part of its business for RM320 million.
The proposed distribution will comprise a special dividend of RM1.30 a share and proposed capital reduction and repayment of 40 sen a share, Adventa said in a filing to Bursa Malaysia yesterday.
In July, the company announced the RM320 million disposal, or equivalent to RM2.10 per share, to Aspion Sdn Bhd.
The ultimate and indirect shareholders of Aspion are Adventa's present chief executive officer, Low Chin Guan, and Mulberry Asia Fund II LP with 30 per cent and 70 per cent stakes, respectively.
Low is also a major shareholder of Adventa, holding a 38.25 per cent stake.
Adventa said the proposed distribution is conditional upon the completion of the proposed disposal, but not vice-versa.
"The proposed special dividend is not subject to any approval from our shareholders or regulators and is expected to be paid to the entitled shareholders after the completion of the proposed disposal," it added.
Payment will be made once the company obtained shareholders' approval at an extraordinary general meeting and the High Court's confirmation.
"The entitlement date for the proposed special dividend and proposed capital reduction and repayment shall be determined by the board and announced in due course after the confirmation by the High Court for the proposed capital reduction and repayment has been obtained," it said.
Read more: Adventa holders poised to gain RM1.70 per share http://www.btimes.com.my/Current_News/BTIMES/articles/ADVENTA/Article/#ixzz2AjvAYq5A