THE meek response to an offer from the major shareholder of Rex Industries Bhd to mop up the rest of the shares is a firm indication that the market feels the value of the company is much higher than what is on the table.

Going forward, Rex Industries major shareholder Darmendran Kunaretnam has to prove to the market that they were not wrong by judging that his offer to sweep up the rest of the shares at RM1.65 undervalued the company.

A company official says substantial works and efforts need to be carried out over the next few quarters for the company’s results to reflect the valuations that the market has accorded the stock.

“We appreciate (that) the market values Rex Industries higher than the price offered for the mandatory general offer,” the spokesman tells StarBiz.

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