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Cash offer of S$0.215 per share for POSH ‘fair and reasonable’: IFA

PROVENANCE Capital, the independent financial adviser (IFA), has advised the recommending directors of PACC Offshore Services Holdings (POSH) to recommend shareholders accept the cash offer at S$0.215 per share because it is "fair and reasonable".

The IFA's opinion was reported in the circular dated Nov 28 and despatched on the same day to shareholders.

Quetzal Capital made a voluntary conditional cash offer on Nov 4 for the loss-making mainboard-listed company. The offeror does not intend to revise the offer price, which represents a premium of about 97.2 per cent over the last traded price on Oct 30, 2019. It also represents a premium of about 35.3 per cent over the 12-month volume-weighted average price.

Quetzal Capital is the bid vehicle formed by certain members of the Kuok group of companies, namely Kuok (Singapore) or KSL in short, Trendfield Inc, a wholly-owned subsidiary of Kuok Brothers, and Merry Voyage, a wholly-owned unit of Kerry Holdings.

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The offeror has garnered irrevocable undertakings representing 77.6 per cent of the total number of shares outstanding from KSL and its wholly-owned subsidiary Camsward as at Nov 22.

The offer is conditional on receiving valid acceptances of at least 90 per cent of outstanding shares at the close of the offer by 5.30pm on  Dec 18.

POSH shares closed unchanged at S$0.215 on Thursday before the announcement.