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SHELL (4324) Will Shoot Up to RM4.00 !!

wecan2088
Publish date: Thu, 19 Jan 2017, 02:10 PM

Thursday, 19 January 2017 | MYT 12:07 PM

Shell Refining board tells minorities: Reject Malaysia Hengyuan offer

 
 

KUALA LUMPUR: The board of Shell Refining Company (Federation of Malaysia) Bhd and the independent adviser have advised the minority shareholders to reject the takeover offer from  Malaysia Hengyuan International Ltd.

Independent adviser AmInvestment Bank said on Thursday the offer price of RM1.92 per offer share was not fair as it was 53.8% to 59.6% below the range of fair value per share based on discounted cashflow (DCF) valuation of between RM4.16 and RM4.75 per share.

It also said the offer was a 61.13% to 65.76% below  the closing market price as well as historical volume weighted average price (VWAP) of the shares up to the acquisition announcement, which ranged from RM4.94 to RM5.6082.

AmInvest added it was 7.72% to 47.73% below the closing market price as well as historical VWAPs Refining shares up to the notice’s last trading date ranging from RM2.3334 to RM3.6735,” it said.

 
 

“Based on the DCF valuation, the equity value attributable to each SRC Share ranges from approximately RM4.16 to RM4.75,” it said. 

Shell Refining's board (except for the interested directors) also concurred with the independent adviser's recommendation.

It said the offer was not fair and not reasonable and “recommends that holders of offer shares reject the offer”. 

 

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Be the first to like this. Showing 19 of 19 comments

JN88

China man WOR.... You want fight v them?

2017-01-19 14:14

wecan2088

CHINA Man will goreng up to RM4.00 first before selling down.

2017-01-19 14:19

Apollo Ang

simple,china man make shell lost over RM 1 bil, see the retails wanna sell or not. push it down till RM 1.80 and sure the retails need to accept the deal at RM 1.92

2017-01-19 14:28

wecan2088

EPF start buying SHELL shares from open market.

2017-01-19 14:41

JN88

Apollo Ang: China Man angry ady, will push to PN17 and delisted.... see u scared or not.

2017-01-19 14:50

probability

Go go Shell!

2017-01-19 15:30

Apollo Ang

EPF sold at around RM 2.00-2.20 now buying back at 2.70? who's the cronies been selling to EPF? EPF now buy high sell low just like FGV is it?

2017-01-19 15:31

probability

market opinion changes ma....
Mahathir dont want Chinese accumulating Malaysian assets.

2017-01-19 15:32

probability

go go...easy come down...easy go up!

2017-01-19 15:50

zyrexho

how can you tell that EPF is buying back?

2017-01-19 15:51

ctquay600305

Apollo Any..any proof

2017-01-19 15:59

Apollo Ang

bursa website lah proof

2017-01-19 16:14

Jay

DCF is always very subjective. Plus it's a mandatory takeover, offerors in MTO doesn't want your shares so they ask independent adviser to advise reject

2017-01-19 17:16

SALAM

EPF had been consistently selling for the past one month!! Mana ada beli, kawan ???

2017-01-19 17:41

probability

some "shell shock" victims.. have not recovered from their psychological trauma earlier..

success only favors the bold.

2017-01-19 19:04

valuelurker

I dont mean to sound like an asshole but...cashflows pattern more than badminton lel use what DCF

2017-01-19 20:17

probability

aiya ASShole....

just see the ASS-set...ASSign a reasonable cash it can generate assuming the Crude price stabilizes....ASSume a realistic margin on top of their production cost la....if you want u can even ASSume 2% margin... also take into consideration the Interest over ASSset currently..

then you CFA can figure out ma...what should be the Market Cap over Invested Capital...

no need DCF!

2017-01-19 20:40

valuelurker

Another noobhai want to trap people ah whats your average price

2017-01-19 21:05

Apollo Ang

will not buy,already up more than 40% from the low. too late already, won't go up to 4.00 anyway. will down below RM 2.50 in the short term

2017-01-22 21:36

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