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Lizhong's S$0.50 general offer gets Oct 2 deadline

LIZHONG Wheel Group shareholders have until the business close of Oct 2 to decide on a 50 Singapore cent per share conditional general offer by the aluminium alloy wheel maker's major stakeholder, according to offer documents sent out on Friday.

The offer price is almost double the 25.5 Singapore cent trading price of the shares on Aug 6, which was before the takeover was first announced. Lizhong shares have since moved higher, and were last traded at 49.5 Singapore cents on Thursday.

The offer is made by Berkley International, an investment vehicle for the Zang family, which controls 64.23 per cent of Lizhong. The offer will turn unconditional only if the offeror receives enough acceptances to own at least 90 per cent of the company.

The majority owners plan to privatise the company if the offer is successful.