Alternatively, shareholders may opt for a combination of 30 cents per share in cash and one new redeemable preference share in the capital of the offeror, E2I. E2I was incorporated on July 10 to undertake the offer. It is wholly-owned by SAL’s controlling shareholder, Zezz FundQ, and run by Goh Peng Ooi, SAL’s group executive chairman and founder. The new redeemable preference share will not be listed on any securities exchange and does not carry any voting or dividend rights. They will mandatorily be redeemed five years after their issuance at 18 cents apiece, representing a five-year compound annual growth rate (CAGR) of 24.6%.
PhillipCapital analyst Glenn Thum is recommending Silverlake Axis (SGX:5CP
) ’ (SAL) shareholders accept the company’s cash offer of 36 cents. SAL announced its intention to go private on Aug 26.
The offer of 36 cents per share represents some 2.7 times of SAL’s net asset value (NAV) per share of 13.5 cents as of June 30, Thum points out in his Aug 29 report. It is also 20% higher than the company’s last-closed price of 30 cents on Aug 23.
