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OSIM International‘s Chairman and CEO, Ron Sim, has raised his offer to buy the remaining 30.75% stake in the company he and his family do not own to $1.39 a share from $1.32 a share. The final offer price represents a premium of about 38.8% and 40.6% to the volume-weighted average price a share for the corresponding one-month and three month periods up to and including Feb 29, 2016, respectively.
Shareholders who accept the offer will receive an amount that will be adjusted to reflect whether they have received the FY2015 final dividend of two cents a share, with effect from April 6, 2016, which is the books closure date.
Shareholders who do not receive the FY2015 final dividend will receive $1.39 a share. Those who receive the FY2015 final dividend will receive $1.37 a share, which is the final offer price less the FY2015 final dividend.
OCBC Investment Research recommends that shareholders accept OSIM International founder and CEO Ron Sim’s revised offer of $1.39 a share for all shares of the company.
The research house says the offer is reasonable, representing 20.5x FY15 P/E and 20.1x FY16F P/E, even though the stock lacks strong drivers for earnings growth.
OSIM says there will be no further revisions made to this final offer price. Shareholders who accept the offer will receive $1.39 per share, while those who receive the FY15 final dividend of two cents per share will receive the adjusted $1.37 per share.
The offer will now close on April 25, 2016.
This article first appeared in The Edge Singapore Market Report.