Lee Metal inks MOU on potential offer; shares hit 3-year high before announcement

Steelmaker Lee Metal Group has entered into a binding memorandum of understanding (MOU) with an unrelated third party, the company said in an announcement on the Singapore Exchange.

This is after the company's board was notified by certain shareholders who received an unsolicited approach on a potential transaction which "may or may not lead to an acquisition of the issued share capital of the company".

"Each of the specified shareholders have provided certain standard exclusivity undertakings in favour of the MOU party, subject to legal and regulatory obligations," the company said in a Saturday announcement.

"The specified shareholders have informed the board that the parties to the MOU have no obligation to consummate the proposed transaction."

The announcement came a day after the company closed trading at S$0.385, up two cents or 5.5 per cent, at a three year and three month high.

Some 4.6 million shares changed hands, the highest in almost three weeks.