The independent financial adviser (IFA) to the takeover of WBL Corporation, KPMG Corporate Finance, has rejected Straits Trading Company's offer as "not fair from a financial point of view".
In a letter to WBL independent directors on Feb 13, KPMG said it has evaluated Straits Trading's S$3.36 a share cash offer or share swap offer of 1.0543 new Straits Trading shares per WBL share after considering various factors, such as WBL's sum of the parts valuation and comparison of the offer to WBL's average price and premiums or discounts of precedent takeovers.
Accordingly, WBL's independent directors has also advised stockholders and convertible bondholders to reject Straits Trading's offer.
WBL, a technology, motor and property group, is being courted by both Straits Trading and United Engineers. UE said it intends to offer S$4 a share for WBL late last month.
Above taken from The Business Times. Article by Cai HaoXiang
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