Wednesday, June 15, 2011

#Flash* Japan's Oji Paper launches RM257m takeover of HPI Resources

KUALA LUMPUR: Japan's Oji Paper Co. Ltd has launched a takeover of HPI RESOURCES BHD [] to acquire all the 58.528 million shares for RM257.52 million or RM4.40 per share.

HPI said on Wednesday, June 15 that it had received the notice of the conditional take-over offer from RHB Investment Bank on behalf of Oji Paper's unit Oji Paper Asia Sdn Bhd.

'The board has deliberated on the offer and does not intend to seek an alternate person to make a take-over for the offer shares,' it said.

At RM4.40, this was a premium of 47 sen or 12% over the last traded price of RM3.93.

It said the offer price was at a price-to-earnings of 10.3 times based on the audited consolidated basic earnings per share of'' 42.80 sen. This was a price-to-book multiple of 1.8 times.

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