Responding to media reports about the poison pill embedded in the shareholder agreement in Pantai, Fortis believes that it is not in the interest of Khazanah for it to be executed. PWAY has also clarified that the impact of the poison pill may not be as severe as suggested by the reports. Recall that Fortis made a cash offer of S$3.80/share for PWAY yesterday, conditional upon Fortis getting more than 50% of the voting shares...
Our house believes this offer is not compelling. We suggest sh/h to wait for further action, given this latest development could provoke a counter-bid by Khazanah, which sees PWAY as strategic asset and the likely vehicle to spearhead the development of medicare at Iskandar Malaysia.
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