Independent adviser Inter-Pacific Securities Sdn Bhd (InterPac) via a circular to shareholders yesterday expressed its view said the offer was not fair and not reasonable after evaluating the terms of the offer.
The TPC board (except interested directors who are deemed interested in the offer and have abstained from making any recommendation) also concurred with InterPac's recommendation to reject the offer.
InterPac noted that the offer price was below the appraised value of TPC shares using the discounted cashflow (DCF) valuation methodology.
Using the DCF valuation, the range of values for TPC shares is between 46 sen and 51 sen. Hence, the offer price is 35% to 41% below the value range of TPC shares.
InterPac said the offer price also represented a marginal premium to the closing market price as at the latest practicable date prior to the printing of the circular with an unattractive takeover premium.
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