Understanding JCET Offer Price for StatsChip Pac

StatsChips Pac was halted for the past few days and the result just came out this afternoon.

JCET offer USD $780 to buy all Statschip Pac Asset except the Taiwan Subsidiaries. In the notes to the announcement, it also stated that this is translated into fully diluted offer price of SGD $0.452 per share.

Following the announcement, retailers are confused as to how much should StatsChip Pac shares be traded, due to the following reason=>

1. The price of share traded on SGX is mark on an undiluted basis.
2. Price quoted on SGX include Taiwan Subsidiaries

The purpose of this post is to help retailers understand  JCET's offer price on a (1) undiluted and (2) complete basis.

In the following image I used the geographical locations of Fixed Asset's book value (from StatsChip 2013 annual report)  to estimate how much the Taiwan subsidiaries should worth under JCET offer.

Estimation revealed that StatsChip Pac should be traded at $0.525 per share now. Although offer from JCET was not accepted by shareholders yet but high chance it will be accepted as Temasek hold more than half of the shares. 

I am still holding on to some StatsChip Pac bought at a high of $0.63 (Click here for detail), I will cut tomorrow.