By LYDIA NATHAN
The board of Unisem (M) Bhd has advised its stakeholders to reject the takeover offer by the company’s founders and other China-based buyers.
In a statement to Bursa Malaysia yesterday, the semiconductor provider described the takeover offer of RM3.30 per share as “not fair” and “not reasonable”.
“Accordingly, we advise and recommend the shareholders to reject the offer.
“Nonetheless, shareholders are advised to closely monitor announcements made by the joint offerors and market price of the offer shares prior to the closing date before making a decision as to whether to accept or reject the offer,” it said.
The board added that the consideration for the offer at RM3.30 for each share would be satisfied in cash.
Earlier in September, Unisem announced that its chairman and group MD John Chia Sin Tet; his son and Unisem ED Alexander Chia; and SCQ Industries Sdn Bhd had offered to take over the company with other buyers for RM1.82 billion.
The pre-conditional voluntary conditional offer also included China’s Tianshui Huatian Technology Co Ltd (TSHT) and Huatian Electronics Group (HK) Ltd.
Unisem also said the partnerships will allow TSHT to strengthen its global presence by leveraging on Unisem’s customers in Europe and North America, while Unisem was said to benefit from TSHT’s presence in China’s semiconductor industry.
The local parties have a 24.28% stake collectively in Unisem. However, if the offer is approved, the China-based companies would eventually become the main shareholders of Unisem.
In an independent advice circular by Public Investment Bank Bhd, it said based on the enterprise value/earnings before interest, tax, depreciation and amortisation (EV/Ebitda) multiple valuation methods, the ascribed equity value of Unisem shares ranges from RM4.31 to RM5.38.
“The offer price of RM3.30 per offer share is below the range of the ascribed equity value per Unisem share which represents a discount of RM1.01 to RM2.08, or 23.43% to 38.66% to the ascribed equity value per Unisem share,” the circular said.
It noted that the offerors will intend to maintain its listing status on Bursa Malaysia, where stakeholders will be able to participate in the trading of its shares even after the closing date.
The closing date of the offer has been set for Dec 27.