In his Jan 27 note, Tay is of the view that the privatisation offer is "fair", given the valuation of 1.07x 9M24 P/BV, which is higher than Japfa’s historical average of 0.7x over the past 10 years.
Investors still keen on exposure to Indonesia's poultry sector can still do so via Japfa's Indonesia-listed subsidiary Japfa Comfeed Indonesia, says Tay.
He observes that Japfa's share price has gained 205% in the last 12 months after the company returned to profitability amid a consumption upcycle.
As such, he recommends shareholders to approve the scheme as they would then be able to exit their investments at a "fair valuation".
Just as an update, Tay has revised his earlier "add" call on the counter to "hold" and his target price to 62 cents - in line with the offer price, from 53 cents earlier.
Japfa shares changed hands at 61 cents as at 10.06 am.
