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ISEC Healthcare's mandatory offer turns unconditional

THE mandatory offer for Catalist-listed ISEC Healthcare has turned unconditional, with the total number of shares controlled by Aier Eye International and its concert parties as well as public acceptances amounting to approximately 50.58 per cent of total shares as at 5.30pm on Dec 2.

Public acceptances of the offer stood at 15.58 per cent. Aier Eye International, which is wholly owned by China's Aier Eye Hospital Group, triggered the offer when it bought a 35 per cent stake under a sale-and-purchase agreement in August. The offer price marks a 5.88 per cent premium over the closing price on the last trading day prior. The offer will remain open for acceptance until 5.30pm on Dec 20, which is the final closing date. 

In November, independent financial adviser CIMB Bank Berhad deemed the mandatory offer for Catalist-listed ISEC Healthcare as "not fair but reasonable".

This comes as the offer price "does not reflect a fair control premium when compared against the premia paid in the non-privatisation transactions" when Aier Eye International first bought into ISEC, said CIMB. This is especially since the offeror is seeking statutory control of the company to grow its own business, it added.

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However, CIMB said that the offer price is reasonable "when compared against the historical trading performance of the shares and considering the valuation multiples of the company implied".