Independent financial advisers believe that the offer is "fair", and the reasons include: the stock has been trading at a price lower than the NAV per share in the past three years, with the acquisition price being 1.33 times the NAV; the...
Independent financial advisers believe that the offer is "fair", and the reasons include: the stock has been trading at a price lower than the NAV per share in the past three years, with the acquisition price being 1.33 times the NAV; the implicit price-to-Net Asset Value ratio (P/NAV) is higher than the average share price-to-Net Asset Value ratio since the announcement of the offer, and is higher than the share price-to-Net Asset Value ratio of 0.22 to 1.10 times the share price-to-Net Asset Value ratio of comparable companies, within the range of 0.48 to 5.88 times the previous privatization transactions. In addition, the acquisition price of 0.895 yuan is also within the valuation range of the stock's 0.888 yuan to 0.959 yuan.
Anguo Holdings' share price rose 1.12% on Tuesday, closing at 0.90 yuan, higher than the acquisition price.
As for the reasons why the offer is "reasonable", it includes that the stock's closed price has never been higher than 0.895 yuan in the past five years, and the acquisition price is 27% higher than the final trading price of 0.705 yuan on April 23, and 74.2%, 68.5%, 48.9%, 46.7%, 44.8% and 42.1% higher than the stock's trading volume weighted average price for the past three, two, 12, six, three and one month. In addition, since the 2023 voluntary acquisition offer ended on January 16, 2024, the stock has a fairly low liquidity, with an average daily trading volume of only about 0.03% of the free-flow volume.
Independent financial advisers consider Amara Holdings’ privatization offer “fair and reasonable” and advise shareholders to accept the offer unless shareholders can sell shares at a higher price in the market.
Therefore, the independent financial adviser advises shareholders to accept this offer unless the shareholders are able to sell the shares in the open market at a higher price than the acquisition price.
In view of the independent financial advisor's view, the directors responsible for giving shareholders' opinions are advised to accept this offer.
The acquisition offer will end on June 10, and the acquirer does not intend to postpone the deadline.
According to a notice sent to shareholders by real estate company Anguo Holdings on Tuesday (May 27), independent financial adviser W Capital Markets believes that the acquisition offer made by the acquirer is "fair and reasonable".
members include DRC Investments (acquisitioner), a consortium of the Zhang Fuquan family, the major shareholder of Anguo Holdings, announced a conditional voluntary acquisition offer for Anguo Holdings on April 28, with the acquisition price of RMB 0.895 per share. The acquirer must delist Anguo Holdings.
