TIGER AIRWAYS HOLDINGS LIMITED
Tigerair
J7X.SI
Tiger Airways: SIA offers to take Tigerair private at S$0.41/share
- Singapore Airlines (SIA) announced that it intends to make a voluntary conditional general offer for all the remaining shares in Tiger Airways (Tigerair) that it currently does not own.
- Each shareholder of Tigerair who accepts the offer will be
- paid S$0.41/share in cash, and
- granted a non-transferable option to subscribe for issued ordinary shares in SIA with an exercise price of S$11.1043/share.
- The offer price of S$0.41 represents a 32% and 42% premium to yesterday’s closing price and volume weighted average price over the past three months, respectively.
- Tigerair has halted trading this morning and based on yesterday’s closing price of S$0.31, we expect it to gap up when it resumes trading again.
- Note that the share price over the last 52 weeks traded nowhere near the offer price, with 52-week high at only S$0.365.
- Given that our current FV is only S$0.27 for Tigerair, we recommend investors to ACCEPT THE OFFER.
- Pending SIA’s management briefing later this morning, we will provide more updates accordingly.
Eugene Chua
OCBC Securities
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http://www.ocbcresearch.com/
2015-11-06
OCBC Securities
SGX Stock
Analyst Report
0.27
Same
0.27
