Mr. Surat Taesriprasert, VP – Head of Capital Market (Thailand) , DBS Vicker Securities (Thailand) Company Limited as the Independent Financial Advisor of Magnecomp Precision Technology Public Company Limited (“MPT”) has reported to the Stock Exchange of Thailand (“SET”) that the IFA has provided their opinion on the tender offer of MPT shares undertaken by TDK Corporations (“TDK”) that the offer price of Bt. 2.70 per share was reasonable compared to various valuation approaches. The derived price from Price to Book Approach and Discounted Cash Flow Approach was 3.70% to 36.67% lower than the offering price.
Furthermore, TDK has explicitly mentioned in this tender offer that they had an intention to propose the shareholders of MPT to delist the company’s securities from the SET. In case, the shareholders approve the delisting plan and the SET approve the Transaction, the shareholders will get the negative effect from lacking of trading liquidity of the company’s securities and there will not be any reference price for sell. Additionally, payback from the investment in the company will only be through dividend payment and there will not be any exemption on the capital gain tax from selling of the company’s shares. The shareholders will also have limited access to the company’s information. Thus, with the reasonable offer price and the abovementioned rationales, the IFA viewed that the shareholders shall accept this on-going tender offer. The tender period will be ended on December 25, 2007 at 4.00p.m.
Notwithstanding, the decision to accept or not to accept the offer shall be solely subject to the shareholder’s discretion. The shareholder is able to view the opinions of the company and the IFA on this tender offer at the website of the SET, www.set.or.th. Details of the tender offer of MPT by TDK (Form 247-4) can be viewed at the company’s web site, www. MagnecompPrecision.com. For any additional information on how to accept the tender offer, please call 0-2343-9500 ext. 603.
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