KUALA LUMPUR (Jan 12): For MyTech Group Bhd (KL:MYTECH) executive chairman Tan Sri Cheng Joo Teik’s 30 sen a share conditional takeover offer of shares he doesn’t own in the company, the independent adviser has deemed it ‘not fair and not reasonable’, and advised minority shareholders to reject the offer. 

Joo Teik and son Datuk Douglas Cheng Heng Lee, through their private vehicle Gain Millen Sdn Bhd, purchased a 17.77% stake from sellers including Zetrix AI Bhd (KL:ZETRIX) group managing director Wong Thean Soon, better known as TS Wong, for RM13.1 million, triggering the offer for shares it does not own. Cheng now owns 42.51% interest in MyTech.

DWA Advisory said in its circular to minority shareholders the offer price is below the market price, trading at a 7.69% discount to the last traded price and 5.8% lower than the recent five-day average price of 32.5 sen and 31.86 sen respectively.

The fact that Cheng plans to maintain the company’s Main Market listing also makes it ‘not reasonable’, the adviser said in a bourse filing. 

In an independent advice circular released on Monday, DWA Advisory said the offer price represents a discount of 8.4% to 17.4% to MyTech’s estimated value of 33 sen to 36 sen per share based on sum-of-parts valuation.

Although the offer was slightly above MyTech’s market price in early January, DWA said this did not justify acceptance, as shareholders could still trade the stock on Bursa Malaysia after the offer closes.

“We are of the view that the offer is not fair and not reasonable. Accordingly, we recommend for the holders to reject the offer,” the adviser said.

Under the offer, Gain Millen is seeking to acquire the remaining 129.16 million shares (52.48%) it does not already own at 30 sen per share in cash.

The offer will close at 5pm on Jan 23, 2026 unless extended.

MyTech operates in precision spring manufacturing and credit financing, with the latter emerging as a key growth driver following the group’s proposed diversification announced in November.

At Monday’s noon break, MyTech’s share price was 1.75% lower at 28 sen, valuing the company at RM68.9 million. The counter has declined over 3.45% year to date.

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MyTech chairman launches 30-sen-per-share takeover bid after buying an almost 18% stake at a discount from sellers including Zetrix’s TS Wong