KL Trader Investment Research Articles

Author: kltrader   |   Latest post: Wed, 25 Nov 2020, 11:40 AM


Amverton Berhad - To be Taken Private by Controlling Shareholder

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Unconditional voluntary Take-Over offer at RM1.20 per share

Amverton’s founder cum chairman and controlling shareholder Tan Sri Ng Boon Thong and his family have offered to take the company private at RM1.20 per share or a total of RM97.0m for the remaining 22.14% shares not held by Tan Sri Ng and his family, to be satisfied entirely in cash.

The offer is not conditional upon any minimum level of acceptances as the Offeror already hold more than 50.0% of the voting shares, as at date of this report, Tan Sri ng and his family hold 87.7% of voting shares in Amverton.

Intention to privatise Amverton

In the notice, its stated Offeror does not intend to maintain Amverton’s listing status and intend to invoke the provisions of Section 222(1) of the CMSA to compulsorily acquire any remaining Offer Shares in the event the Offeror receives valid acceptances of not less than nine-tenths in the nominal value of the Offer Shares.

Revenue and earnings trending lower but asset rich

Amverton’s recent revenue and earnings had declined mainly due to lesser development activities as the Group did not launch any new projects due to soft market environment. On the other hand, the offer price of RM1.20 is 39.0% discount to Amverton’s net asset per share of RM1.97 as at 30 Sep 2019.

Maintain Hold with unchanged TP of RM1.20

We maintained our Hold recommendation with unchanged target price of RM1.20 based on P/B of 0.6x on our estimated FY20F NTA as the outlook for property sector remain uncertain and challenging with affordability and property overhang remains as major issues.

Source: Mercury Research - 22 Jan 2020

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