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Cosco's offer price in Cogent buy-out bid 'fair and reasonable': CIMB

COSCO Shipping International's bid to take Cogent Holdings private comes at an offer price that is "fair and reasonable" under prevailing conditions, the independent financial adviser for the deal has said.

CIMB Bank has also advised that the independent directors recommend shareholders accept the offer of S$1.02 a share, or sell their shares in the open market if they can receive a higher price.

Cogent's independent directors agreed with this assessment, according to a circular that the company filed on the Singapore Exchange website on Thursday.

CIMB, which was appointed independent financial adviser to Cogent's independent directors, noted that Cogent's shares have not traded at or above the offer price in the past three years.

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It added that "the offer price represents a significant premium of approximately 261.3 per cent over the net asset value per share" of 28.23 Singapore cents as at Sept 30.

Cogent closed flat at S$1.01 on Thursday, before the announcement. Meanwhile, Cosco was down 2.5 Singapore cents, or 5.16 per cent, to S$0.46, on a turnover of 18 million shares.

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