IFA says offer to buy out TIH 'not fair and not reasonable'

Singapore

IT shouldn't come across as a big surprise that independent financial adviser (IFA) Tata Capital Markets has deemed the takeover offer of mainboard-listed TIH Ltd by Indonesia's Lippo Group as "not fair and not reasonable" and has recommended that the company's independent directors advise shareholders to reject the offer.

The IFA cited several factors that led to the recommendation, not least because shareholders will not be receiving the offer price fully in cash.

The takeover offer that was first hinted at sans details earlier last November was jointly launched by Lippo Group, a firm led by tycoon Stephen Riady, and TIH chairman Kin Chan of Hong Kong hedge fund Argyle Street Management on Jan 8. The buyout involves a part-cash, mostly bonds offer at 57 Singapore cents a piece - 12.5 Singapore cents in cash and 44.5 Singapore cents through the issue of three-year unsecured notes with a 2.25 per cent in…