05-04-2014, 01:36 AM
IFA full report on the cheap offer :
http://infopub.sgx.com/FileOpen/Fu_Yu_De...eID=289929
Extracted from the report :
“8. CONCLUSION AND RECOMMENDATION
In arriving at our advice in respect of the Offer, we have taken into account, inter alia,
the following key considerations summarised below. This summary should be read in
conjunction with, and in the context of, the full text of this letter.
(a) Historical trading performance of the Shares;
(b) Relative Share price performance vis-à-vis the performance of the market index;
© Analysis of selected valuation statistics of broadly comparable companies to the
Group;
(d) Comparison with recent partial take-over offers of companies listed on the
SGX-ST;
(e) NTA of the Group; and
(f) Other relevant considerations.
Having carefully considered the information available as at the Latest Practicable
Date and based on our assessment of the financial terms of the Offer, we are of the
opinion that, on balance, the financial terms of the Offer are neither fair nor
reasonable given the significant discount to the Group’s NTA and taking into
account the strong net cash position of the Group as at 31 December 2013.
Accordingly, we advise the Independent Directors to recommend to Shareholders who
are prepared to take a long-term view of their investments in the Shares and/or are
confident of the prospects of the Group to REJECT the Offer. We would highlight to
Shareholders who wish to retain their Shares and not accept the Offer that the market
price and/or trading liquidity of the Shares as at the Latest Practicable Date may not
be sustained at the current levels after the close of the Offer or if the Offer lapses.
Shareholders who hold a short-term view of their investments in the Shares and who
wish to realise their holdings in the Shares in the near term may wish to ACCEPT the
Offer and/or TENDER Excess Shares if they are unable to obtain a price higher than
the Offer Price (after deducting all related expenses) on the open market.
Shareholders who accept the Offer and/or tender Excess Shares should note that
there is a possibility that their resultant residual shareholdings may, subject to the
Offer becoming unconditional in all respects, comprise odd-lots after the Offer.”
- vested
http://infopub.sgx.com/FileOpen/Fu_Yu_De...eID=289929
Extracted from the report :
“8. CONCLUSION AND RECOMMENDATION
In arriving at our advice in respect of the Offer, we have taken into account, inter alia,
the following key considerations summarised below. This summary should be read in
conjunction with, and in the context of, the full text of this letter.
(a) Historical trading performance of the Shares;
(b) Relative Share price performance vis-à-vis the performance of the market index;
© Analysis of selected valuation statistics of broadly comparable companies to the
Group;
(d) Comparison with recent partial take-over offers of companies listed on the
SGX-ST;
(e) NTA of the Group; and
(f) Other relevant considerations.
Having carefully considered the information available as at the Latest Practicable
Date and based on our assessment of the financial terms of the Offer, we are of the
opinion that, on balance, the financial terms of the Offer are neither fair nor
reasonable given the significant discount to the Group’s NTA and taking into
account the strong net cash position of the Group as at 31 December 2013.
Accordingly, we advise the Independent Directors to recommend to Shareholders who
are prepared to take a long-term view of their investments in the Shares and/or are
confident of the prospects of the Group to REJECT the Offer. We would highlight to
Shareholders who wish to retain their Shares and not accept the Offer that the market
price and/or trading liquidity of the Shares as at the Latest Practicable Date may not
be sustained at the current levels after the close of the Offer or if the Offer lapses.
Shareholders who hold a short-term view of their investments in the Shares and who
wish to realise their holdings in the Shares in the near term may wish to ACCEPT the
Offer and/or TENDER Excess Shares if they are unable to obtain a price higher than
the Offer Price (after deducting all related expenses) on the open market.
Shareholders who accept the Offer and/or tender Excess Shares should note that
there is a possibility that their resultant residual shareholdings may, subject to the
Offer becoming unconditional in all respects, comprise odd-lots after the Offer.”
- vested