Will SIA’s takeover offer for Tigerair take off?

SIA’s offer is $0.41/share.

SIA has announced that it intends to make a voluntary conditional general offer for all the remaining Tigerair shares that it does not already own, according to a report by OCBC.

SIA is dangling a twofold offer to Tigerair shareholders. Each one who snaps it up will receive $0.41/share in cash, as well as a non-transferable option to subscribe for issued ordinary shares at an $11.043/share exercise price. 

The $0.41/share offer amounts to a 32% and 42% premium to yesterday (November 5)’s closing price and volume weighted average price over the past three months, respectively.

“Note that the share price over the last 52 weeks traded nowhere near the offer price, with 52-week high at only S$0.365,” asserts OCBC.