Here’s why.
On April 1, Isetan (Singapore) announced that it had received an offer from Isetan Mitsukoshi Holdings to acquire the shares that the latter doesn’t own, by way of a scheme of arrangement (SOA). The price being offered is $7.20. The undisturbed price of Isetan on March 26 was $2.84 versus its book net asset value (NAV) of $2.58. Oftentimes, Isetan would trade below its book value.
Why then, did Isetan Mitsukoshi, which holds 52.73% of Isetan (Singapore) offer $7.20 per share? And yet, according to a group of long-term shareholders, the SOA offer still values Isetan below its intrinsic value.
