SHAREHOLDERS of Rexit Bhd, a company providing solutions and services to the general insurance and financial services industry, would do well to hold on to their shares and not dispose of them in an on-going unconditional mandatory takeover offer.
Appointed independent advisor MainStreet Advisers Sdn Bhd has deemed the takeover offer for Rexit by its new substantial shareholders as "not fair" and "not reasonable".
In its independent advice circular, shared in an exchange filing today, MainStreet said the offer price of 85 sen per share fell below Rexit's estimated valuations and the joint offerors also aimed to retain the company's listing status.
On Jan 17, Datuk Seow Gim Shen, Metaco Assets Holdings Sdn Bhd and Bemas Holdings Sdn Bhd emerged as new substantial shareholders of Rexit when they acquired 92.27 million shares or a 53.27% stake in the company for RM78.43 million.
On its valuation, MainStreet said the offer price of 85 sen per offer share was at a discount of between RM0.028 and RM0.084 or approximately 3.19% to 8.99% to the estimated value per Rexit share ranging from RM0.878 to RM0.934.
The report also noted that the new shareholders intend to maintain the listing status of Rexit on the ACE Market of Bursa Securities.
Rexit ended today's trading at 89 sen, giving it a market capitalisation to RM169 million.