CH Offshore: Falcon Energy has raised its offer price for the voluntary bid for CH Offshore (CHO) from $0.495 to $0.55 per share, and extended the closing date to 27 Feb.
In addition, Falcon has received irrevocable undertakings from CHO's second and third largest shareholder, Chuan Hup and co-founder Peh Kwee Chim, to accept the offer, representing 31.5% of outstanding shares, bringing Falcon's control to 60.1%.
We deem the revised offer price, which values CHO at 1.25x P/B, as fair- considering that it is in line with its historical average valuation.
Falcon has stated that the offer price is final and does not intend to extend the offer period.
With the weak environment in the OSV market due to the sharp decline in global oil prices, we do not rule out that CHO's share price may fall (if Falcon maintains its listing status) after the offer lapses.
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