Market talk of possible corporate exercises has resurfaced at Notion VTec Bhd. The rumours include the potential entry of a major US-based private equity firm into the company and Nikon Corp, a current strategic shareholder in Notion, considering upping its stake in the hard disk drive (HDD) components and camera parts manufacturer.
A source said talk of a private equity firm’s entry was not new, but Notion’s board was believed to have been negotiating for a higher price before it would table any proposal to shareholders. He told The Edge Financial Daily that the private equity firm was valuing Notion at about 1.7 times its book. Notion’s net tangible assets (NTA) per share stood at RM1.55 per share as at Dec 31, 2010.
Based on Notion’s last traded price of RM2.16 on Friday and FY10 numbers, it was trading at 1.39 times price-to-book. However, it was understood that not too long ago, Notion’s management had rejected an offer, which was only slightly higher than the present one, on the grounds that it was too low.
A source said talk of a private equity firm’s entry was not new, but Notion’s board was believed to have been negotiating for a higher price before it would table any proposal to shareholders. He told The Edge Financial Daily that the private equity firm was valuing Notion at about 1.7 times its book. Notion’s net tangible assets (NTA) per share stood at RM1.55 per share as at Dec 31, 2010.
Based on Notion’s last traded price of RM2.16 on Friday and FY10 numbers, it was trading at 1.39 times price-to-book. However, it was understood that not too long ago, Notion’s management had rejected an offer, which was only slightly higher than the present one, on the grounds that it was too low.
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