BHIC’s turnaround upside gets priced in

THE cash offer of 48 sen by Boustead Holdings Bhd for minority holders of Boustead Heavy Industries Corp Bhd (BHIC) provides relief to shareholders in the illiquid stock but limits their potential for greater upside if the company experiences a future operational rebound.

The price represents a significant premium – 55% above the last trade and 71% above the six-month volume-weighted average – making it an appealing exit for minorities in a low-liquidity scenario.