SINGAPORE (Oct 27): KGI Securities is advising shareholders of Innovalues to accept PE firm Northstar’s proposed share offer, while Maybank Kim Eng thinks Northstar’s evaluation of the company is “at the low end” of its valuation range. (See also: Innovalues’ 3Q earnings down 10.9% to $6.0 mil on absence of forex gains)To recap, Northstar is seeking to acquire Innovalues for S$331.4 million, and is effectively offering S$1.01 per share Innovalues share it does not own. The cash-and-share option comprises 61 cents in cash, and one share of Precisions Solutions Group in exchange for every Innovalues share. However, Maybank’s analyst Gregory Yap says Northstar’s valuation of Innovalues is at the low end of the research house’s fair valuation of the stock based on merger and acquisition (M&A) transactions since 2000. Yap also notes that that Innovalues’ shareholding structure does not preclude a competing offer from succeeding if the price offered is higher than Northstar’s.

Source: The Edge Markets October 27, 2016 05:05 UTC