Vard's adviser maintains 'not fair but reasonable' opinion on buyout

Vard's independent financial adviser CIMB Bank has maintained its recommendation that Fincantieri's buyout is "not fair but reasonable" in the shipbuilding company's latest circular released on the Singapore Exchange.

Updated numbers on the latest release showed the exit offer price of 25 cents in cash for each offer share represents around a 9.2 per cent discount to the net asset value (NAV) per share, and a 20.1 per cent premium over the net tangible asset (NTA) per share as of March 31.

This was in comparison to the earlier circular, which said the exit offer price represents a discount of 14.9 per cent to the NAV per share, and a premium of 10.6 per cent over the NTA per share as of Dec 31 last year.

Also, new numbers showed the exit offer price is priced at a discount of 14.4 per cent to the revalued net asset value (RNAV) per share as of March 31, compared with the 19.2 per cent discount to the RNAV per share of 30.9 cents as of Dec 31.

Vard also highlighted to shareholders in its new circular that the exit offer will be conditional upon the delisting resolution being passed at the company's July 24 extraordinary general meeting.

If the condition is not fulfilled, the delisting will not proceed and the company will remain listed on the Singapore Exchange. The exit offer will also lapse, and all acceptances of the exit offer will be returned, Vard added.

The exit offer will be conditional upon the delisting resolution being passed at the company's July 24 extraordinary general meeting... The company emphasised that approving the delisting does not automatically mean accepting the exit offer.

The company emphasised that approving the delisting does not automatically mean accepting the exit offer.

Vard's counter ended unchanged on Monday at 25 cents.

A version of this article appeared in the print edition of The Straits Times on July 10, 2018, with the headline 'Vard's adviser maintains 'not fair but reasonable' opinion on buyout'. Print Edition | Subscribe