Morgan Stanely, which is acting as an independent adviser to Parkway Holdings (P27.SG), said Wednesday the partial offer made by Malaysia’s Integrated Healthcare Holdings is not compelling even though the offer price is “reasonable”, says Dow Jones.

“Although the value implied by the offer price is reasonable, the offer price is not compelling in the context of a partial offer involving a change of control,” Morgan Stanely said in its report. Parkway filed a copy of the report to the Singapore Exchange.

Last month, Integrated Healthcare Holdings, a wholly owned subsidiary of Malaysian sovereign wealth fund Khazanah, said it has launched a $1.18 billion partial takeover for Parkway Holdings. The Malaysian company is offering $3.78 a share in cash for 313 million shares.

Integrated Healthcare currently owns a 24.1% stake in Parkway and if the offer is successful, the group will hold a 51.5% stake in the company. Integrated Healthcare’s partial offer closes July 8.