Best World’s exit offer ‘fair and reasonable' - IFA

It estimates that the value of each share ranges between $1.36 and $2.69.

Best World International's proposed exit offer of $2.56 per share was "fair and reasonable”, according to an independent financial adviser as disclosed in an offer circular on 24 June.

In April, Best World has made an exit offer of $2.50 per share to eligible shareholders via selective capital reduction.

Factors considered in arriving at the final exit offer price included the historical trading price of shares over the past six months, the adjusted net asset value per share as of 31 December 2023, the company's current financial position, and market conditions in relevant industries.

“Having considered the various factors set out in the earlier sections of this Letter and summarised below, we are of the opinion that the financial terms of the Exit Offer are fair and reasonable,” said the Evolve Capital Advisory (ECA).

ECA said, according to its own estimates and computations, the estimated value of the shares ranges between S$1.36 to S$2.69 for each share. 

“The Final Exit Offer Price is within the fourth quartile range of the estimated value of the Shares,” it pointed out. “We wish to reiterate that ECA’s own estimates and computations are theoretical and do not imply that the Shares should trade within such range.”

It also indicated that the chances of receiving competing offers are low. ECA said the exit offer offers an opportunity for eligible shareholders who may struggle to sell their investments at a fair market price due to low trading liquidity.