image source: wikipedia
22nd Feb 2023 Update:
Boustead Singapore has made a revised offer of 95 cents to acquire Boustead Projects, which is a 5 cents improvement from its original offer of 90 cents.
However, the new offer still falls 4 cents short of Boustead Projects' last traded price of 99 cents as at the close of 21st Feb 2023.
The revised offer is considered final, said Boustead Singapore, unless a competitive situation arises.
SIAS president David Gerald has called on Boustead Singapore to increase its offer to a level closer to Boustead Project's book value, according to some analysts estimates, Boustead Project RNAV is pegged at about SGD1.80.
16th Feb 2023 Update:
Securities Investors Association (Singapore) (SIAS) had previously engaged with Boustead Singapore Limited, and as of 16th February 2023, SIAS is urging the company to improve its privatisation offer for its subsidiary, Boustead Projects.
Boustead Singapore has launched a voluntary unconditional offer to privatise and delist Boustead Projects from the Mainboard of SGX-ST, offering 90 cents per share; the parent company intend to focus on rebuilding its business as a private limited company. However, SIAS has raised concerns about the offer, and is urging Boustead Singapore to improve the offer made to shareholders of Boustead Projects.
It is worth noting that Boustead Projects has established a private business trust, Boustead Industrial Fund, in Singapore, to manage certain investments in logistics, business parks, and industrial properties, and achieve a stable flow of recurring income and capital growth for its unitholders. Boustead Projects is expected to record a disposal gain from its initial injection of properties into Boustead Industrial Fund.
In the past, SIAS has posed questions to Boustead Singapore and has recognized the company for being transparent and for sustainability efforts.
------------------------------------------------------------------------------------------------------------------------
A general offer was made by Boustead Singapore to purchase all of the outstanding shares of Boustead Projects for S$0.90 each. The offer represents a premium of almost 7.8% over the most recent share price traded as of February 3.
Boustead Projects' revalued NAV is estimated by the brokerage to be $1.79, or almost twice the offer price.
Analysts predict an 11.5% EPS accretion for FY24F if the deal closes, and are optimistic about the deal. The proposed acquisition, according to Boustead Singapore, would free it from the additional responsibilities associated with being a listed company on the Mainboard of the SGX-ST, allowing it to concentrate on rebuilding its operations, including Boustead Project's Engineering and Construction business, as a private limited company.
No comments:
Post a Comment