The independent directors of Teckwah Industrial Corporation has recommended that its shareholders accept its privatisation offer of 65 cents, unless they are able to obtain a better price on the open market.

The statement, released on September 16, comes after IFA – RHT Capital has considered the offer to be “fair and reasonable” after its assessment.

The offer price exceeds the highest ever closing price since listing and represents a premium of 42.5% over 12-month volume-weighted average price (VWAP).

The privatisation offer will close at 5.30pm on September 30.

On August 12, the executive chairman of Teckwah, Thomas Chua, led a consortium to buy out minority shareholders at 65 cents.

See: Teckwah chairman Chua offers to privatise company at 65 cents per share

The offer was made via Clementine Investments.

The concerted parties include Chua Thian Poh, chairman of property company Ho Bee Holdings.

Activist investor Quarz Capital on July 28, suggested that the company raise its payout ratio to 80% and dividends to 3.15 cents, which would give a much higher yield of 6.3%.

See also: Quarz Capital emerges as major shareholder of Teckwah Industrial, suggests raising dividends in open letter

On August 4, Teckwah rebutted with an open letter defending its decision to maintain its current dividend payout.

See also: Teckwah Industrial responds to Quarz's open letter, defends decision to maintain current dividend payout

Shares in Teckwah last closed at 64 cents.