SINGAPORE (May 31): PT Indofood Sukses Makmur has revised its offer for Indofood Agri Resources to 32.75 cents per share from 27.75 cents per share.
The revised offer price represents an increase of 5 cents or 18% over the initial offer price of 27.75 cents per share, after adjustment for the FY2018 dividend of 0.25 cent.
See: Indofood Agri Resources gets 28 cents per share offer to delist
The revised offer price is also 26% and 42.1% higher than the last traded price on April 5 and VWAP for the 1-month period up to and including the same date.
“The Offeror does not intend to further revise the Final Offer Price,” says CIMB on the offeror’s behalf in a Friday night filing.
PT Indofood Sukses Makmur, the controlling shareholder of Indofood Agri, wants to take the agribusiness group private and delist from the Singapore Exchange for better management.
On May 27, the offeror had extended the closing date to 5.30 pm on June 25 from May 24.
See also: Offer for Indofood Agri extended by a month to June 25
As at 5pm on May 31, the offeror and its concert parties own 82.35% of Indofood Agri issued share capital of 1.4 billion units.
Earlier in a May 10 circular, Novus Corporate Finance, the independent financial advisors, said the offer is “not fair, but reasonable” and recommended shareholders accept the offer.
In Issue 882 (week of May 20), The Edge Singapore said the offer price of 28 cents per share "significantly undervalued the long-term potential of the assets held by IndoAgri".
“Instead of encouraging minority investors to accept such a paltry offer, you ought to be working to address our company’s obviously depressed market valuation in a manner that is fair and reasonable to all its shareholders,” said The Edge.
