Shareholders of ASteel Group Bhd have been advised to reject the unconditional mandatory takeover offer made by Hii Capital Holdings Sdn Bhd, according to an independent adviser appointed to review the bid. MainStreet Advisers Sdn Bhd concluded that the cash offer of 7.5 sen per share is neither fair nor reasonable.

The advisory firm based its assessment on a comparison between the offer price and ASteel’s estimated value. The proposed 7.5 sen per share price represents a 39.81% discount relative to the group’s estimated value of 12.46 sen per share, calculated using unaudited net assets as of June 30, 2026. Additionally, this offer is 37.13% lower than the company’s audited net asset value of 11.93 sen per share as of December 31, 2025.

Despite the offer price being higher than ASteel’s historical market prices prior to the announcement of the takeover bid, it remains below the company’s estimated intrinsic value. Moreover, the offer price is reported to be 11.76% less than ASteel’s last traded market price on September 17, 2026, and 14.29% lower than the five-day volume-weighted average price leading up to that date.

The recommendation by MainStreet Advisers signals caution for shareholders considering the takeover proposal, highlighting that the bid undervalues the company based on recent financial data and market performance. The adviser’s neutral valuation approach weighs both the historical share price movements and the company's net asset-based valuations in reaching its conclusion.

Hii Capital Holdings’ unconditional offer followed the listing of ASteel on the local bourse. However, the independent adviser’s evaluation underscores a significant gap between the bid price and ASteel’s underlying financial worth, which should be a critical consideration for shareholders ahead of any acceptance.

No further comments were immediately available from Hii Capital Holdings or ASteel Group regarding the recommendation or the next steps in the takeover process. The final decision rests with ASteel shareholders, who will consider the independent adviser’s findings alongside other market factors in determining the outcome of the offer.