It was second time lucky for the privatisation of M3nergy Bhd.
In an announcement to Bursa Malaysia yesterday, the advisers to Adamus Avenue Sdn Bhd, which made an offer to take M3nergy private, said the company had received 90.16% of voting shares for the privatisation move on its extended deadline yesterday. As such, the privatisation offer of M3nergy has become unconditional.
Adamus Avenue, a privately-owned company of M3nergy’s managing director and CEO Datuk Shahrazi Sha’ari and his wife Datin Tinawati Nordin, had in May launched a conditional takeover of the oil and gas player at RM1.85 per share.
This is the second attempt to take M3nergy private.
The first attempt was in August 2008 when Melewar Equities (BVI) Ltd — the largest shareholder of M3nergy — undertook a takeover bid for the company at RM1.20 per share.
Some minority shareholders were unhappy with the offer, citing it as too low compared to the company’s net tangible assets (NTA) per share of RM3.30 then. When the first offer closed in November 2008, Melewar managed to acquire only a 72.78% stake and was not able to take the company private.
The current privatisation offer, however, was not well accepted by M3nergy’s board, with its financial adviser HwangDBS Investment Bank Bhd saying the conditional takeover offer from Adamus was not fair and not compelling.
The offer price was at a substantial discount of RM1.34 per share, or 42% below M3nergy’s NTA per share of RM3.19 as at March 31, 2010.
- by Joyce Goh
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