The offer is being made, amid uncertainties of market volatility caused by the pandemic, so that minority shareholders have an “clean cash exit opportunity” at a “significant premium” of what the shares are now trading at.
SEE: Analysts mixed on Hi-P International on 'continual improvement in ESG factors' and 'M&A-driven growth'
At $2, it is 160.1% over the net asset value of the company as at June 30; it is also a 13.6% above the last traded price of $1.76 on Dec 14, before trading of Hi-P shares were halted.
The offer document also notes that the offer price is above the average target price of $1.43 by analysts covering the stock.