Dr Beng Teck Liang, who is leading a takeover offer of Singapore Medical Group, has raised the offer price to 40 cents from the original 37 cents.
The offer, by Beng, SMG’s CEO and other individuals, was first announced on September 13, adding SMG to the list of SGX-listed companies that are being privatised, or have done so.
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.
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.