Biosensors Int’l Group: CITIC PE makes an offer at S$0.84/share
With regards to CITIC Private Equity Funds Management Co., Ltd’s offer for a proposed amalgamation between Biosensors International Group (BIG) and CB Medical Holdings Limited (CBMHL), it was reported that CBMHL had revised their original offer of S$0.815/share to 1) S$0.84/share or 2) a share consideration relating to CB Cardio Holdings II Limited (CBCH II).
On the basis of this revised offer price, the directors of the parties involved have determined that the amalgamation is in the best interests of their respective companies and have approved it.
Prior to the announcement, we had a HOLD rating and fair value estimate of S$0.66. Given the significant premium of 27% to our fair value estimate, we believe the offer price is attractive and recommend investors to ACCEPT THE OFFER. (Jodie Foo -- OCBC INVESTMENT RESEARCH)
With an offer of $0.84 per share, why are there still so many sellers at $0.805 and $0.81? For someone who buys at $0.805, he could get a profit of $300 (after one way brokerage) if he buys 10000 shares, a return of 3.72% within a period of 3 months or less (assuming the take over offer completes within this period)!
