The value implied by Khazanah's fractional offer price for healthcare group Parkway Holdings is logical but it's not convincing in the milieu of a bid, involving a change of control, says Morgan Stanley.

It came to the termination after noting that Parkway shares are last trading above Khazanah's offer price of S$3.78 a share.

Still, Morgan Stanley, the independent financial advisor to Parkway says that the offer price symbolizes a premium over the 1 to 12 month period proceeding to the declaration of Khazanah's bid.

The autonomous financial adviser points out that the liquidity of the shares may be impacted by the conclusion of the partial offer.

Parkway's sovereign Directors or IDs have suggested that shareholders, who yearn to apprehend their investments in the Company, may consider selling all or a fraction of their shares.

Otherwise, for shareholders who hold a complimentary view of the firm's projection, the IDs recommend that they deem retaining all or a portion of their shares.

The IDs also say that the Board has yet not been approached by any other party about a contending tender.

A $1.18 billion partial takeover offer to acquire Parkway's shares and raise its stake in Parkway to 51.5% was made by Khazanah's Integrated Healthcare Holdings, last month.

India's Fortis Healthcare, which holds some 25% of Parkway, has said it is keeping its options open, though it is widely whispered to make a rival offer.