Adviser urges rejection of United Malacca takeover bid
The RM6.10-a-share offer is 39.18 per cent below the plantation group’s estimated revalued net asset value, according to MainStreet Advisers.
Shareholders in United Malacca Bhd should reject the mandatory takeover bid from Prosper Trading Sdn Bhd, independent adviser MainStreet Advisers Sdn Bhd has recommended. Its assessment found the RM6.10-a-share proposal neither fair nor reasonable.
MainStreet’s independent advice circular valued the company at an estimated RM2.1 billion, with revalued net asset value (RNAV) estimated at RM10.03 a share. The bid falls short of that valuation by RM3.93 a share, equivalent to 39.18 per cent. Compared with unaudited net assets of RM7.45 a share as at July 31, 2026, the shortfall is RM1.35, or 18.12 per cent.
Although the bid exceeded historical share prices through Oct 9 by 2.15 per cent to 6.28 per cent, MainStreet said that premium did not warrant acceptance given the discount to estimated RNAV. It also noted that Prosper Trading, together with the joint ultimate offerors, intended to preserve United Malacca’s Bursa Malaysia Main Market listing.
Keeping the listing would allow investors who decline the bid to sell their holdings later through the market, MainStreet said, particularly if liquidity or share prices improve. The company’s non-interested directors, with the exception of Ong Keng Siew, endorsed the adviser’s findings and likewise urged shareholders to reject the proposal.
