Topic 14 – Valuation Letter by Asia Equity Research Sdn Bhd

ISSUE 14– DATE 6 JANUARY 2016

VALUATION LETTER ISSUED BY AER IN RELATION TO ASCRIBING THE FAIR VALUE ATTRIBUTABLE FROM THE PORT OPERATIONS OF NCB HOLDINGS BHD (NCB)

INTRODUCTION AND OBJECTIVE

MMC Corporation Bhd (MMC) had successfully completed the acquisition of 53.4% equity interest (Controlling Block) in NCB on 1 December 2015, for a price of RM 4.40 for each NCB share. This acquisition had enabled MMC to acquire a controlling stake with a cumulative equity shareholding of 83.6% following the completion of this acquisition. Prior to acquiring the Controlling Block, the total shareholding in NCB held by MMC was 30.1%. The acquisition of the Controlling Block, imposed a requirement on MMC to make an offer to all the remaining NCB’s shareholders, to purchase NCB shares not owned by MMC, pursuant to Malaysian Code of Take-overs and Mergers 2010 at RM4.40 per share (Offer Price).

AER was appointed by NCB Holdings Bhd to determine the fair value of the port operations, i.e. NMB Group. The fair value ascribed for the NMB Group was aggregated to the fair value of KN Group to arrive at the aggregate fair value of NCB. The results of the fair valuation is presented in a valuation letter (Valuation Letter), which specifically focuses on ascribing the fair value for the NMB Group, addressed to the board of directors of NCB, is included as an annexure in the Independent Advice Circular despatched to shareholders of NCB on 28 December 2015.

The full circular could be downloaded from bursa saham website via

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4959741

T14- Equity Valuation

THANKS FOR READING.

This article is prepared by Ong Tee Chin, CFA, FRM, and represents the view of the author. He can be contacted at ong@atlantiscapital.org for any further enquiries on the contents of this article. The author wishes to declare that this article is a paid research by NCB Holdings Bhd. It is annexed as an annexure in an Independent Advice Circular to the shareholders of NCB Holdings Bhd.

You are required to obtain written consent from Asia Equity Research Sdn Bhd (AER), if you wish to redistribute or reproduce in its original form the information from this article or quoting in other materials. AER reserves the right to take legal action against any party / parties that violates any property rights with respect to this article without obtaining such written consent.

CERTIFICATION

Chartered Financial Analyst
CFA Institute



Financial Risk Manager
Global Association of Risk Professionals (GARP)

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