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The company managed to pare its losses to end the day 5.48% or eight sen lower at RM1.38. Its shares had hit a record high of RM1.46 yesterday.
However, at RM1.38, Ewein’s share price was at its second-highest ever, giving it a market capitalisation of RM416.19 million.
In the morning session, Ewein was the fourth highest loser by value among stocks on Bursa Malaysia. The counter saw a total trading volume of 17.24 million shares today.
Yesterday, independent adviser UOB Kay Hian Securities (M) Sdn Bhd said the unconditional mandatory takeover offer for Ewein was “not fair and not reasonable”.
It advised shareholders to reject the deal, adding the offer price of 60 sen per share was not fair as it represents a discount of 44 sen or 42.31% to the estimated value of Ewein shares derived using the sum-of-parts valuation methodology of RM1.04.
It also added the offer is not reasonable as the offeror intends to maintain Ewein’s listing status on the Main Market.
On June 14, Ooi announced he planned to acquire all the remaining 149.01 million shares or 49.41% of Ewein not already owned by him and persons acting in concert (PAC) —Hong Yeam Wah and Goh Kiang Teng — for RM89.41 million.
He made the offer after raising his stake to 43.82% from 3.84%, after acquiring a 39.99% stake from Hijauwasa Sdn Bhd for RM72.36 million.
Collectively, Ooi and the PACs now own 50.59% of Ewein. The offer will remain open for acceptance until July 26, unless extended.
Hijauwasa is reported to be controlled by Sit Chin Leng, who was holding the shares as an administrator of her late husband and Ewein founder Ewe Swee Kheng’s estate.
Ewe was the executive chairman when he passed away at age 53 in October 2021. It was reported he was one of the prosecution witnesses in the RM6.3 billion Penang undersea tunnel graft case involving former Penang chief minister and finance minister Lim Guan Eng.
Pivot to property development
Ewein is a precision sheet metal moulds, tools, dies and fabricated parts manufacturer, used in electrical and electronics equipment. The group has also diversified into property development in recent years.
Its flagship development is the RM800 million City of Dreams luxury serviced apartment project located between Gurney Drive and Tanjung Tokong in Penang.
It also owns the Menara IJM Land in Penang, which comprises a piece of land with a 16-storey office building and 7-storey car park, according to the company’s website.
Meanwhile, NationGate is an electronic manufacturing services (EMS) provider with Ooi as its single largest shareholder with a 65% stake.
On its debut on the ACE Market on Jan 12 this year, NationGate surged to close at a premium of 163%. It has since continued on an upward trajectory with its shares surging 339.5% from its initial public offering (IPO) price of 38 sen to close at RM1.67 per share today.
Ooi has said he will not increase his takeover offer for Ewein as he intends to maintain its listing status on the Main Market.
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