SIAS founder, president and CEO David Gerald notes that the IFA, in gauging the offer, had set an “arbitrary” market cap limit of $500 million. As such, there were only two SGX-listed comparables cited: Indofood Agri Resources and Kencana Agri. While the IFA included eight Jakarta-quoted comparables as well, Indonesia is an emerging market.
The Securities Investors Association (SIAS) describes the privatisation offer by the Adijanto family for shares they don’t already own in Global Palm Resources Holdings “too low” and “unfair”, and calls upon minority shareholders to reject the deal.
While Provenance Capital, the independent financial adviser, has deemed the 25 cents per share offer “fair and reasonable”, SIAS disagrees, and calls on the Adijanto family that controls GPR to offer a higher price.
