OSIM International’s Chairman and CEO Mr Ron Sim has revised his voluntary unconditional cash offer from S$1.32 to S$1.39 for all shares in the company. It is also stated that there will be no further revisions made to this final offer price.

Shareholders who accept the offer will receive S$1.39/share, while those who receive the FY15 final dividend of S$0.02/share will receive the adjusted S$1.37/share. The offer will now close on 25 April 2016. We recommend shareholders to accept the offer, as we keep to our view that the offer is reasonable, representing 20.5x FY15 P/E and 20.1x FY16F P/E, while the stock lacks strong drivers for earnings growth.

Source: OCBC Research - 5 Apr 2016