KUALA LUMPUR: Minority shareholders in TA Enterprise Bhd (TAE) should accept Datuk Tony Tiah Thee Kian (pic) buyout offer, as it is higher than the company’s prevailing price in the stock market.

The buyout is also a chance for investors to exit the stockbroker and avoid the risk of holding shares in a “illiquid” counter, despite its cheap valuation.

“Shareholders who choose not to accept the offer may continue to hold their TAE shares and will have the opportunity to dispose of their TAE shares in the open market at the prevailing market prices, which can be higher or lower than the offer price, as long as TAE shares remain listed, ” DWA Advisory Sdn Bhd said.

“However, in view that currently TAE is not in compliance with the public spread requirement, the offeror may request TAE to make the necessary application to withdraw TAE’s listing status, ” the company pointed out.

Tony Tiah, who controls 77.7% of TAE shares, is offering 65.5 sen a share to buyout the remaining minority shareholders in the company he founded.

The stock was last traded at 65 sen yesterday.While the offer was at a premium to market prices, DWA Advisory viewed the offer as “unfair” because of it was at a significant discount to the TAE break down valuation of between RM2.25 and RM2.26 a share.However, after taking consideration of the stock’s historical performance, the firm viewed the offer as “reasonable”.

TAE has received an unconditional takeover notice from Tony Tiah on Dec 14 after his stake in the company had increased from 42.36% to 59.82%.