Broker's take: OCBC says Ron Sim's offer to privatise OSIM is reasonable

[MovieStar]

OCBC Investment Research is recommending that shareholders of OSIM International should accept the founder's offer to privatise the luxury massage chair maker.

Early Monday, OSIM's founder and chief executive officer Ron Sim made a voluntary unconditional cash offer of S$1.32 a share to take the lifestyle company private. The offer price is S$1.30 a share excluding final dividends.

Mr Sim owns 68.31 per cent of OSIM.

The offer comes a month after OSIM reported a full-year net profit of S$51 million for 2015, down 50 per cent from 2014, even while revenue slipped 10 per cent to S$620 million.

See who is talking about OSIM INTL LTD

Here are some comments by OCBC's analyst, Jodie Foo:

"The offer price represents a 31.8 per cent and 33.5 per cent premium to the volume weighted average price for the corresponding one-month and three-month periods respectively."

"The offer price also represents a significant premium of 61 per cent to our 12-month fair value estimate of S$0.82. Mr Sim intends to make the offer with a view to delist and privatise OSIM."

"Given the tough environment ahead and the lack of strong drivers for earnings, we view this offer to be reasonable and recommend shareholders to accept the offer."

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[jw5]

OSIM is known for its line-up of celebrity endorsements which include HK, China and Taiwan stars like Gong Li, Lin Chi Ling, S.H.E, Michael Wong, Liza Wang and Louis Koo. Let's see after they go private, whether they continue to do that.

 

[johnny333]

With a recession coming, how many people are willing to spend $$$..$ on an expensive massage chair

If you visit Batam you can get a 1 hour traditional massage for 100,000 rupiah, about $11. While there you can also jalan, jalan & have some good makan.

 

[GoldenDragon]

With a recession coming, how many people are willing to spend $$$..$ on an expensive massage chair

If you visit Batam you can get a 1 hour traditional massage for 100,000 rupiah, about $11. While there you can also jalan, jalan & have some good makan.

no need to get osim. other brands just as good and at least 50% cheaper.

 

[jw5]

With a recession coming, how many people are willing to spend $$$..$ on an expensive massage chair

If you visit Batam you can get a 1 hour traditional massage for 100,000 rupiah, about $11. While there you can also jalan, jalan & have some good makan.

Definitely a luxury item for the rich, that's what these massage chair companies have been counting on all these years.

 

[hsienloong]

Beware the EMF radiation emitted by these machines may be more harmful
than the benefits of the massage.

 

[Pinkieslut]

With a recession coming, how many people are willing to spend $$$..$ on an expensive massage chair

If you visit Batam you can get a 1 hour traditional massage for 100,000 rupiah, about $11. While there you can also jalan, jalan & have some good makan.

Not only massage, but additional sextisfaction with a happy ending

 

[eErotica69]

OSIM also owns TWG Tea.

 

[JohnTan]

OSIM's shops are usually empty when I pass by. It's strange how they keep posting profits year after year. After a couple of years, I decided to just invest in them despite seeing the empty shops. If they can afford the monthly rents despite the empty shops, then they are doing better than what most people expect. I am glad Ron Sim did not disappoint me. Time to sell!

 

[jw5]

OSIM also owns TWG Tea.

The TWG Tea outlet in Marina Bay Sands is always very crowded. That's how you can tell the economy is doing well, besides the usual kopi roti outlets.

 

[hsienloong]

OSIM's shops are usually empty when I pass by. It's strange how they keep posting profits year after year. After a couple of years, I decided to just invest in them despite seeing the empty shops. If they can afford the monthly rents despite the empty shops, then they are doing better than what most people expect. I am glad Ron Sim did not disappoint me. Time to sell!

Good one, John.

 

[Leckmichamarsch]

will Michael Ong's CNA follow suit????

 

[RSIsNothing]

When OSIM got delisted and within 8 months submit an application to HK Stock Exchange for listing, you already know the man Ron Sim is. He makes his money at other people's expenses.