DBE Gurney takeover offer deemed reasonable

by TMR

MERCURY Securities Sdn Bhd views Doh Properties Holdings Sdn Bhd takeover offer of all the remaining ordinary shares and warrants in DBE Gurney Resources Bhd for a cash consideration of 3.5 sen per offer share and one sen per offer warrant as fair and reasonable.

Mercury, acting as the independent advisor in the deal, has advised that DBE shareholders accept the offer, it said in a filing to Bursa Malaysia yesterday.

DBE’s board of directors concurred with Mercury’s position and the shareholders accepted the bid as well.

DBE director Raja Azlan Shah Raja Azwa noted the offer price of one sen for the warrants was not fair, as it was at a steep discount to the theoretical valuation of 2.64 sen and historical market price of the DBE warrants of up to 1.7 sen.

However, considering all the facts, Raja Azlan Shah is of the view that the offer is reasonable and recommends shareholders to accept it. — TMR