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Exit offer for Xyec fair and reasonable: IFA
THE exit offer made by the controlling shareholder of Catalist-listed Xyec Holdings is fair and reasonable, the independent financial adviser (IFA) to the unconflicted directors of the company said in a delisting circular on Monday.
Mamezou Holdings, which is listed on the Tokyo Stock Exchange and controls 59.92 per cent of Xyec, has made an exit offer of S$0.30 per share as part of a voluntary delisting for Xyec proposed in late March this year.
The IFA, SAC Capital, said in the circular that shareholders should either vote in favour of the proposed delisting or retain their stake in Xyec if they "are prepared to take a longer-term view of their investment in the shares and/or are positive about the prospects of the group (taking into consideration the offeror's intentions for the company)".
Mamezou had said in a bourse filing on March 29 that if it successfully delists Xyec, it "intends to proceed with the merger with the company which may materialise within six months from the completion of the exit offer".
Xyec provides engineering services, IT services and IT solutions. It has been listed on the Catalist board since September 2013.