Mandatory offer for TMC Education fair and reasonable, says independent financial adviser

SINGAPORE - The independent financial adviser (IFA) engaged by the directors of TMC Education has recommended that shareholders accept the takeover offer from Singapore tycoon Koh Wee Meng, which it deemed as "fair and reasonable".

In a circular sent to shareholders on Monday (Jan 15), TMC Education directors said that ZICO Capital, their IFA, pointed out that the offer price offers shareholders an exit opportunity and there is no certainty that shareholders will otherwise be able to obtain a better value for their shares if the offer lapses.

Hence, shareholders are advised to accept the offer or sell the shares in the open market if they can obtain a price higher than the offer price after deducting all related expenses, the directors said.

The mandatory unconditional cash offer from Mr Koh was made through his investment holding firm JK Global Asset, following his acquisition of a 51 per cent stake in TMC Education from controlling shareholders Chin Kon Yuen and his spouse Yeow Cheng Khim at 6.75 cents per share.

The cash offer at 6.75 cents apiece represents a 29.8 per cent premium to the volume-weighted average price of shares traded in the three-month and six-month period prior to the announcement date.

Mr Koh does not intend to continue the main education business, but has no intention to introduce any major changes to the business of the company, and will perform a strategic review after the offer closes. He also plans to retain TMC Education's Catalist listing status.

The offer closes on Jan 30.