Daejan’s board has agreed to the offer of 8,050p a share, valuing the FTSE 250-listed loss-making property group at £1.3bn.
But an investor of thirty years said the deal is “disappointing”, as it comes below the company’s net asset value per share, 11,907p as of last 31 March.
“I can see where the recommendation has come from,” said Paul Mumford, fund manager at Cavendish Asset Management.
“Given its performance over the years, the low level of liquidity in the shares makes this a fairly balanced offer,” he added.
“The company has shown good growth over my initial purchase price of £10 per share.”
Shares soared 55% to 8,000p on Friday afternoon.