A takeover offer for Maxim Global Bhd from its managing director Tan Sri Gan Seong Liam is not fair and not reasonable, said the deal’s independent adviser.
Maxim Global is worth RM656 million, or 89 sen per share, based on its revalued net asset value, sharply higher than the offer price of 24 sen per share, according to MainStreet Adviser Sdn Bhd. The offer also undervalues the property developer’s estimated net asset of 76 sen per share, the firm said.
The offer is also not reasonable as Gan and his connected parties aim to maintain the listing of Maxim Global, providing an avenue for minority shareholders to sell their shares, MainStreet said.
“Accordingly, we recommend that the holders reject the offer,” the adviser concluded.
The mandatory takeover offer was triggered after Gan bought the equivalent of a 15.54% stake in Maxim Global from executive director Chai Chang Guan and her brother Chai Seong Min for RM27.42 million.
The acquisition raised Gan’s direct interest to 37.33%. Gan and the people connected to him, including children Gan Kuok Chyuan and Gan Kuok Wei, together now own 60.37% in Maxim Global. His two children are also executive directors in the company.
Minority shareholders have until June 15 to accept the offer. The offer price was already at a discount to the stock’s last levels before the takeover was launched on May 4.
Maxim Global returned to the black in the financial year ended Dec 31, 2021 (FY2021). For FY2025, it posted a net profit of RM33.44 million on revenue of RM443.78 million.
Shares of Maxim Global were unchanged at 26.5 sen on Thursday, valuing the company at RM195 million.
