M3NERGY takeover offer receives almost 85% acceptances

Adamus Avenue Sdn Bhd, which launched a conditional takeover of M3nergy Bhd, has to-date received close to 85% acceptances for the voting shares in the oil and gas services provider.

This is pursuant to the extension of the offer closing period by another 14 days from June 25 to July 9, 2010 with regard to the RM1.85 per share offer.

Sources told Bernama that more acceptances were expected to come from shareholders over the next few days, edging closer to the 90% acceptance level which is required for the privatisation exercise of M3nergy by Adamus Avenue to go ahead.

Meanwhile, the conditional takeover offer of 100% of M3nergy shares comprises all existing 126.658 million shares of RM1 each in M3nergy, excluding 828,000 treasury shares, as well as any new M3nergy shares of up to 6.116 million that may be issued and allotted to eligible employees and directors of M3nergy.

The sources said the offer price of RM1.85 per share gave shareholders an opportunity to exit their investment in M3nergy at a premium without being exposed to potential future market risk of their investment in the company.

The premium of 9.47% being offered at that price was also within the range of takeover premiums and higher than the average takeover premiums of 8.61% for the comparable takeover transactions over the last 12 months, they added. – Bernama