As such, the final price will always lie somewhere in between these two extremes.
SIAS has asked the Ong family, which is trying to take Lian Beng Group private, to come up with a better offer than the 62 cents per share on the table.
In an open letter to the company's board, controlled by the Ongs, David Gerald, founder, president & CEO of Securities Investors Association (Singapore), acknowledges a “basic truth” in privatisation offers – that while shareholders will want to receive the full value for their shares, offerors will always pitch their offers as low as possible in order to extract maximum benefit from their purchase.
