KUALA LUMPUR: Tanjong plc share price surged in early trade on Monday, Aug 2 after it resumed trade following a conditional takeover offer from Tanjong Capital Sdn Bhd at RM21.80.
At 9am, it was up RM3.68 to RM21.26 with 15,800 shares done.
Tanjong Capital is a special purpose vehicle established by Usaha Tegas Sdn Bhd and its concert parties to acquire all the ordinary shares in Tanjong with a cash offer price of RM21.80 per share. This values
Tanjong at RM8.8 billion, with minority shares valued at up to RM4.7 billion.
Currently, Usaha Tegas and parties acting in concert own 46.9% of Tanjong and do not intend to maintain Tanjong's listing status.
OSK Research said the privatisation is expected to be completed by end-September.
"We are raising our TP to RM21.80 to reflect the offer price and recommend that investors accept the offer," it said.
OSK Research said the offer price represents a 21.9% premium to Tanjong's last traded share price and a 22.0% premium over its volume weighted average (VWAP) share price over the past six months.
"The offer price is also a relatively attractive 17.2% premium over our fair value of RM18.60, a 14.2% premium over the market's average fair value of RM19.08/Tanjong share and thumps the upper end of the market's fair value by 7%," it said.
At 9am, it was up RM3.68 to RM21.26 with 15,800 shares done.
Tanjong Capital is a special purpose vehicle established by Usaha Tegas Sdn Bhd and its concert parties to acquire all the ordinary shares in Tanjong with a cash offer price of RM21.80 per share. This values
Tanjong at RM8.8 billion, with minority shares valued at up to RM4.7 billion.
Currently, Usaha Tegas and parties acting in concert own 46.9% of Tanjong and do not intend to maintain Tanjong's listing status.
OSK Research said the privatisation is expected to be completed by end-September.
"We are raising our TP to RM21.80 to reflect the offer price and recommend that investors accept the offer," it said.
OSK Research said the offer price represents a 21.9% premium to Tanjong's last traded share price and a 22.0% premium over its volume weighted average (VWAP) share price over the past six months.
"The offer price is also a relatively attractive 17.2% premium over our fair value of RM18.60, a 14.2% premium over the market's average fair value of RM19.08/Tanjong share and thumps the upper end of the market's fair value by 7%," it said.
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