Lee Kim Tah

Lee Kim Tah: is making a voluntary conditional general offer to take the company private, offering S$1.08/share to buy out minority shareholders. Including concert parties, the offeror holds in aggregate 86.4% of the issued shares, and does not intend to preserve the listing status of the company if it crosses the 90% shareholding level. LKT’s key assets include: - a 50% stake in suburban retail mall Jurong Point, - hotel and investment properties in Sydney, - an associate stake in Marco Polo Xiamen Hotel, and - a 74.85% stake in an integrated township in Chennai. Its construction arm is also active in India where the group has secured several contracts in Bangalore and Chennai with its partner Woh Hup. The Lee family has been actively buying up the stock in the open market for many years, culminating in the latest general offer. OSK-DMG believes the offer is fair, at a 16-23% discount to our fair value range of S$1.28-1.41/share. A successful legal resolution to the group’s large township in Chennai would put fair value towards the upper range of its valuation. The house recommends shareholders to accept the offer.