Not all privatisation offers were successful, with Frasers Hospitality Trust a notable example.
UOB Kay Hian’s Llelleythan Tan, in his Sept 22 note, urged shareholders to reject the offer. Tan has a target price of 45 cents on the stock.
As of Nov 2 2022, the offeror has received valid acceptances representing approximately 77.42% of the total number of issued shares and approximately 76.23% of the maximum potential number of issued shares.
The revised offer of 40 cents represents an attractive premium ranging between approximately 25.4% to 28.6% over the VWAP per share over the past 12 months.
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It is also a premium of 16.8% and 357.1% over the net asset value and net tangible asset value per share respectively as of Dec 31 2021.
The offeror does not intend to revise the offer again, unless there’s a competing bid.
SMG shareholders who have already accepted the 37 cents offer will be paid 40 cents too.
SMG shares closed Nov 2 at 38 cents, up 4.11% for the day.
