“The offer from Hanwha of 60 cents represents only a 6.2% premium to the one-month volume weighted average price (VWAP) and 14.1% premium to the three-month VWAP,” says the estate. “This does not appear to have factored an attractive control premium, which according to the Corporate Finance Institute2 would average between 20% to 30% of a target’s share price.”
Hanwha Group’s offer of 60 cents for Dyna-Mac lacks an “attractive control premium”, says the estate of Dyna-Mac’s founding shareholder, Desmond Lim Tze Jong, in an Oct 10 statement.
The estate issued a follow-up statement stressing that the offer is not “compelling” after Hanwha issued its offer document on Oct 2. In the offer document, the group kept its offer price, although it did not say that it was the final offer.
