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OSIM founder raises privatisation bid to S$1.39 a share
OSIM International's chairman and chief executive officer, Ron Sim, has revised his offer to buy over the remaining 30.75 per cent of stake in the company that he and his family do not own to S$1.39 a share, instead of S$1.32 a share.
The final offer price represents a premium of about 38.8 per cent and 40.6 per cent to the volume-weighted average price (VWAP) a share for the corresponding one-month and three-month periods up to and including Feb 29, 2016, respectively.
Shareholders who accept the offer will receive an amount that will be adjusted to reflect whether they have received the FY2015 final dividend of S$0.02 a share, with effect from April 6, 2016, which is the book's closure date. Shareholders who do not receive the FY2015 final dividend will receive S$1.39 a share, while those who receive the FY2015 final dividend will receive S$1.37 a share, which is the final offer price less the FY2015 final dividend.
The final offer price implies a price/earnings ratio of 20.5 times, based on the earnings per share of S$0.0679 for the financial year ended Dec 31, 2015.
Credit Suisse (Singapore) is acting as exclusive financial advisor and Morgan Lewis Stamford as legal adviser to Mr Sim.
The offer will now close on April 25, 2016, unless otherwise extended.