KUALA LUMPUR Malaysian shipping group MISC Bhd (MISC.KL) said a revised $3 billion offer from shareholder Petronas PETR.UL to buy out all remaining stock was not fair, because it was lower than the combined valuation of its different divisions.
State oil company Petroliam Nasional Bhd, which already owns nearly 63 percent of MISC, on Friday raised its offer to 5.50 ringgit per share from 5.20 ringgit after the Employees Provident Fund, MISC's other major shareholder with nearly 10 percent, said the original bid was unattractive.
"The revised offer price is not fair as the indicative sum-of-parts valuation of the MISC group is above the revised offer price," MISC said in a local stock exchange filing on Monday, basing its opinion on recommendations by independent adviser AmInvestment Bank.
Nevertheless, MISC said it agreed with AmInvestment Bank's recommendation to shareholders to accept the revised offer, which it said was reasonable in view of the risks and challenges the company faces going forward.
AmInvestment said the shipping business is facing acute overcapacity, low demand and depressed charter rates. High bunker fuel prices will also continue to put downward pressure on MISC's profitability.
Its shares ended the day 1.10 percent lower at 5.40 ringgit per share, while the benchmark stock index .KLSE fell 0.04 percent.
(Reporting By Yantoultra Ngui; editing by Jane Baird)
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