PETALING JAYA: A day after Tan Sri Datuk Tan Hua Choon (pix) upped his offer for Computer Forms (Malaysia) Bhd (CFM) to RM1.35 a share, the independent adviser, Maybank Investment Bhd, maintained that the new offer is not fair and not reasonable, and shareholders reject it.
The revised offer price represents a discount of RM0.69 or 33.82% to the fair value of the company of RM2.04 per CFM share.
The board of directors of the company concurred with the recommendation of the adviser. The revised offer is open for acceptance until 5pm, on Tuesday, Dec 18.
An earlier offer of RM1.25 a share, was RM0.79 or 38.73% lower than the estimated fair value per CFM Share. The revised offer represents a 6.29% premium to Tuesday’s closing price of RM1.27.
Tan’s offer for CFM is to increase his shareholding in the company to have better management of the CFM Group’s business which include strategy and operational planning and implementation.
The move is to allow Tan to undertake a detailed review and evaluation of the CFM Group’s operations which had recorded a loss after tax of RM1.16 million, RM0.51 million and RM2.41 million for the past three financial years, and drive the future business direction of the CFM Group.
Tan has no definitive business plans or strategies to turnaround the CsFM Group at this juncture and plans to maintain the listing status of the company.
Source: The Sun Daily