On July 10, GVT announced that Dutch semiconductor firm Aalberts Advanced Mechatronics has tabled a 94 cents per share offer, which is a 11.9% premium over GVT's share price just prior to the holding announcement of a possible share sale on June 1.
The offeror is a unit of Aalberts NV, listed on Euronext Amsterdam with a market cap of EUR3.45 billion.
Acquiring GVT will give Aalberts a foothold in the semiconductor manufacturing space in southeast Asia.
Based on the earnings projected by DBS, the offer price represents a PE of 29.3x for FY2024, 25.7x for FY2025, and 17.2x for FY2026, which is broadly inline with the global peers.
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DBS notes that executive deputy chairman Ricky Lee Tiam Nam and CEO Julian Ng Wai Yuen and so on have already agreed to sell.
The announcement on July 10 includes, however, includes a line that states this will be so unless there is a competing offer of at least $1.0341 per share and that Aalbert does not match, or betters its current offer.
"While the offer price represents a three-year high, it remains below our 12-month target price of $1.12 and the all-time high of approximately $1.45 reached in September 2021.
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"However, with the support of 64.24% of shareholders, the likelihood of scheme approval is high, which could eventually result in the delisting of GVT," says DBS.
GVT shares changed hands at 92 cents as at 2.26pm on July 11, down 3.66%.
