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Parent SMB United - now having only a 59.77% controlling interest in EDMI - has Just today (28Mar11) made a GO at $0.365/share for the remaining shares with a view to privatize EDMI.....
http://info.sgx.com/webcoranncatth.nsf/V...10011EAF7/$file/Joint_Announcement.pdf?openelement
SMB United is being advised by CIMB Bank, and EDMI's IDs will soon have to appoint an acceptable IFA to evaluate the fairness of the GO and give an independent advice to the IDs.
Fundamentally, the GO at $0.365/share is not adequate as it is way-off the intrinsic value of each EDMI share, and frankly, unless the offer is revised upwards to a more fair and acceptable level, I really don't see how SMB United can get what it wants.
I suppose existing EDMI shareholders should just hold on to their shares, get the coming $0.0075/share Final dividend for FY10, and wait for the IFA's opinion and IDs' recommendation.
http://info.sgx.com/webcoranncatth.nsf/V...10011EAF7/$file/Joint_Announcement.pdf?openelement
SMB United is being advised by CIMB Bank, and EDMI's IDs will soon have to appoint an acceptable IFA to evaluate the fairness of the GO and give an independent advice to the IDs.
Fundamentally, the GO at $0.365/share is not adequate as it is way-off the intrinsic value of each EDMI share, and frankly, unless the offer is revised upwards to a more fair and acceptable level, I really don't see how SMB United can get what it wants.
I suppose existing EDMI shareholders should just hold on to their shares, get the coming $0.0075/share Final dividend for FY10, and wait for the IFA's opinion and IDs' recommendation.