Karambunai shareholders advised to reject takeover offer

NEXUS KARAMBUNAI RESORT KOTA KINABALU

KUALA LUMPUR: Independent adviser Inter-Pacific Securities has advised minority shareholders of Karambunai Corp Bhd to reject the privatisation offer by Tan Sri Dr Chen Lip Keong at five sen per share and two sen per warrant.

Chen, who has a 68.46% stake in property and tourism outfit Karambunai, is offering to buy out the remaining shares and warrants of Karambunai. Karambunai is involved in the hotel, tourism, property development, construction and travel businesses.

The independent adviser said although the offer can be deemed reasonable, in was the view that the “not fair” substantially outweighed the “reasonableness”.

It explained that Karambunai share offer price of five sen represented a significant discount of approximately 76.19% to the revalued net asset value (RNAV) per Karambunai share of 21 sen.
“If a recent valuation was carried out on the  Bukit Unggul Land (the date of last revaluation was on July 27, 2012), the RNAV per Karambunai share is likely to be higher than 21 sen,” it said.
In addition, Inter-Pacific said the warrant offer price of 2 sen was a significant discount of approximately 39.58% over the theoretical value of the warrant of 3.31 sen.

“As such, Inter-Pacific recommends that the holders reject the offer,” it said.