Brokers' take: DBS Group Research deems RHT offer price fair
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.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Asia stocks rise on Wednesday amid Wall Street rally; STI up 0.6%
Orsted says Taiwan wind project to power TSMC on track for 2025 finish
China knockoff raid jolts a global throng of fake-fashion influencers
Tesla profits tumble but shares rise on new vehicle plan
Brokers’ take: CGS International upgrades Nanofilm to ‘hold’ despite lower target price
Roche cuts pipeline after research setbacks and sales drop