Buyout offer for Zagro Asia fair and reasonable

ZAGRO Asia's major shareholder, Poh Beng Swee, is offering to buy over the shares of minorities and delist the company from the mainboard of SGX.

On hearing about the offer a couple of weeks ago, my initial reaction, as a shareholder, was that the offer was a little on the low side as the shares have a net asset value in the region of 35 cents.

However, on careful reconsideration, I am of the view that the offer is fair and reasonable. Here are some important factors to consider.