“We recommend minority investors to take the offer, as valuation appears attractive at 15.3 times FY21 estimated price-earnings ratio, vis-à-vis 5-year average forward price-earnings ratio of 10 times,” states Lai in his Dec 20 note.
Maybank Kim Eng analyst Lai Gene Lih is recommending Hi-P International’s investors to accept the $2 per share privatisation offer tabled on Dec 18 by chairman Yao Hsiao Tung.
The offer price is 10.5% above Hi-P’s last traded price of $1.81 before the offer was announced on Friday morning. The $2 offer price is also 62% above Lai’s target price of $1.23.
