With about two more weeks to go for the special general meeting to approve the proposed amalgamation between Biosensors and CB Medical Holdings, as well as the subsequent delisting of Biosensors, we would advise shareholders to accept the cash offer of S$0.84/share, instead of the share offer in CBCH II.

For shareholders who are considering the share offer, besides the various caveats such as lack of liquidity, these shares would also be subjected to a four year "lock-up" in the absence of an IPO. An IPO is not guaranteed. Take note that an approval level of at least 75% is still required for the proposed amalgamation to go through.

In consideration of the risk that the offer does not meet the minimum approval, given that the trading price has been relatively near the offer price, investors can also consider reducing their stakes now.

Some important dates to note:

1) Proxy Form should arrive no later than 10am on 3 April 2016,

2) Expected last day of trading in shares on 4 April 2016,

3) Special General Meeting to be held on 5 April 2016.

Source: OCBC Research - 23 Mar 2016