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THE offer price by Fortis Healthcare Limited for RHT's assets at 46.5 billion rupees (S$966 million), or S$0.90 a unit, is fair, said DBS Group Research.
This is at an 11 per cent premium to the closing price on Wednesday, and implies a price-net asset value ratio of 1.07 times.
"We believe the price is fair based on the implied valuation," said analysts Rachel Tan and Derek Tan. "In addition, we note that the first half 2018 distribution has not been declared."
Units in RHT Health Trust surged 10.5 per cent to S$0.895 on Wednesday following the offer by Fortis, its controlling shareholder.
Nomura estimated that the offer price translates to a unit cost of about S$0.90 to S$0.91 per share - although it is the portfolio that is for sale rather than the trust. Analysts generally agreed the price was fair.