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Ron Sim's offer for OSIM 'fair and reasonable': PwC
OSIM International founder Ron Sim's S$1.39-a-share ex-dividend offer to privatise his company is "fair and reasonable", said independent financial adviser PwC in a circular to shareholders on Friday.
PwC said that this is due to, among other reasons:
* The price to earnings ratio implied by the final offer price of 17.3 times above the median of 15.3 times and mean of 14.7 times of the ratio of a range of comparable companies like Hong Kong-listed jeweller Chow Sang Sang, Chow Tai Fook, Luk Fook, and leather goods company Prada;
* the premia of the final offer price above corresponding one-month and three-month volume weighted average prices (VWAP) being above the median and the mean of corresponding selected successful delisting or privatisation transactions; and
* the final offer price being above the VWAP of Mr Sim's purchases from June 26, 2015 to Feb 22, 2016, of S$1.31 a share.
PwC thus recommended independent directors of OSIM to recommend shareholders to accept the offer.
OSIM last traded at its final ex-dividend offer price of S$1.39.