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Aztech receives exit offer at 42 cents/share for proposed voluntary delisting
AZTECH Group has received a voluntary delisting proposal with an exit offer of 42 Singapore cents in cash a share from a special-purpose vehicle (offeror) whose sole shareholder and director is Michael Mun Hong Yew - the company's largest shareholder, and group chief executive and chairman.
The delisting proposal to acquire all the shares in the company was submitted by Maybank Kim Eng Securities on behalf of the offeror and was announced by the firm on Tuesday.
The offer price represents a 29.2 per cent premium over 32.5 Singapore cents - the last traded price prior to the joint announcement and a 38.3 per cent and 21 per cent premium over Aztech's volume-weighted average price of one month and three months respectively.
Upon trading resumption on Tuesday following the announcement, Aztech shares gained 8.5 Singapore cents or 26 per cent to 41 Singapore cents as at 10.11am.
Parties acting in concert with the offeror are Mr Mun Hong Yew's three sons, including Jeremy Mun Weng Hung, Aztech's executive director, and his brother who together with Mr Mun Hong Yew and AVS Technologies, a firm controlled by him, collectively own 25.6 per cent of Aztech.
Mr Mun Hong Yew owns 23.9 per cent interest in Aztech.
The offeror has obtained an irrevocable undertaking from Mr Mun Hong Yew and the rest of the concert parties to vote in favour of the delisting exercise and accept the exit offer in respect of all the shares held by the.
The rationale for the delisting offers accepting shareholders an opportunity to realise their investments for a cash consideration at a premium.
Furthermore, the trading liquidity of Aztech shares in the past year has been thin. The offeror also believes that the delisting would provide the company's management greater flexibility to manage and develop the existing businesses without the attendant cost, regulatory restrictions and compliance issues associated with its listed status on Singapore Exchange.
The company said the offeror does not intend to revise the exit offer price.