Vard's independent financial adviser maintains 'not fair but reasonable' recommendation on Fincantieri offer

VARD's independent financial adviser CIMB Bank has maintained its recommendation that Fincantieri's buyout is "not fair but reasonable" in the shipbuilding company's latest circular released on the Singapore Exchange.

Updated numbers on the latest release showed the exit offer price of S$0.25 in cash for each offer share represents around a 9.2 per cent discount to the NAV (net asset value) per share, and a 20.1 per cent premium over the NTA (net tangible asset) per share as at March 31, 2018.

This was in comparison to the earlier circular, which said that the exit offer price represents a discount of around 14.9 per cent to the NAV/share and a premium of 10.6 per cent to the NTA per share as at Dec 31, 2017.

Also, new numbers showed the exit offer price is priced at a discount of around 14.4 per cent to the RNAV (revalued net asset value) per share as at March 31, compared to the 19.2 per cent discount to the RNAV per share of S$0.309 as at Dec 31, 2017.

Vard also highlighted to shareholders in its new circular that the exit offer will be conditional upon the delisting resolution being passed at the company's July 24 EGM.

If the condition is not fulfilled, the delisting will not proceed and the company will remain listed on the Singapore Exchange. The exit offer will also lapse, and all acceptances of the exit offer will be returned, Vard added.

The company emphasised that approving the delisting does not automatically mean accepting the exit offer.