Global Premium Hotels shareholders urged to accept S$0.33 offer price

No price increase or extension coming.

Shareholders of Global Premium Hotels (GPHL) would be wise to accept the offer price of $0.33 for each offer, according to OCBC Investment Research, noting the recent announcement that the offeror, Mr. Koh Wee Meng, does not intend to revise the offer price.

In accordance with Rule 20.2 of the Singapore Code on Take-over and Mergers, the offeror will not be allowed to subsequently amend the terms of the offer, including the offer price, in any way. The offeror intends to despatch the Offer Document on 27 March 2014 and fix the closing date of the offer on 24 April 2014.

The offeror also does not intend to extend the Offer beyond 5.30 p.m. on the closing date.

Alternatively, OCBC advised that shareholders may sell their shares in the market before the closing date for a higher price if possible.

"The offer is at our FV of S$0.33," noted OCBC.

"While 4Q13 revaluation gain of land and hotel buildings of S$259.5m helped to boost NAV to 64.0 S cents as of end-Dec from 39.6 S cents as of end-Sep, GPHL has been trading at an average price of only around S$0.26 over the past year (before the announcement of the offer)," it added.