Monday, 7 February 2011

Latexx Partners says Navis has sufficient funds for takeover

Latexx Partners says Navis has sufficient funds for takeover
Written by Joseph Chin of theedgemalaysia.com
Wednesday, 02 February 2011 08:49


KUALA LUMPUR: LATEXX PARTNERS BHD [], which received a takeover offer from Navis Asia VI Management Company Ltd, has vouched that the fund management’s RM852.03 million offer would not fail as it has sufficient resources.

In reply to a query from Bursa Malaysia, Latexx said on Wednesday, Feb 2 that Navis confirmed that it had sufficient financial resources to undertake the acquisition as it currently has over US$3 billion in capital under management and had sufficient unutilised funds for the acquisition.

On Monday, Navis Asia offered RM852.03 million to acquire all of Latexx’s assets and liabilities for RM852.03 million or RM3.10 per share, which was 30 sen above the last traded price of RM2.80.

Latexx also said the takeover was in the best interest of of the company as the offer price was a premium of about 20% over the pre-disturbance closing price of RM2.58 per share (that is closing market price on Jan 26) and about 19.7% over the five-day volume weighted average market price up to Jan 26.

“The offer price represents a premium of approximately 189% over the unaudited consolidated net assets per share of the company as at Sept 30, 2010 of RM1.07 and a premium of approximately 260% over the audited consolidated net assets per share of the company as at Dec 31, 2009 of 86 sen,” it said.

Latexx added the acquiror’s track record reflected their ability to grow the business after the acquisition.

“After having considered the factors above, the board believes that the disposal is in the best interest of Latexx. The board will be appointing a principal adviser and an independent adviser to advise the shareholders on the fairness and reasonableness of the proposal,” it said.

It added the board does not intend to maintain the listing status of Latexx and the company will be delisted after the distribution of the cash and/or securities to shareholders and warrantholders.

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