Extension of closing date for privatisation offer
Tanjong Capital Sdn Bhd has extended the closing date for
the acceptance of the conditional takeover offer of all
Tanjong’s voting shares by two weeks to 27 September
2010. The offer price at RM21.80/share and all other details
and terms and conditions of the offer remain unchanged.
We believe Tanjong’s shareholders should accept the offer
given the attractive valuations at 13x FY11F PE and 2.1x
P/BV, which are above its historical highs. The offer price is
also 12% above our SOP-derived target price of
RM19.50/share. We believe that the extension is to facilitate
the 90% acceptance level. Capital Group, which holds
c.10% shares in Tanjong will be the key party to determine
if the deal will go through smoothly.
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