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LTC Corporation controlling shareholders plan takeover offer at S$0.925 per share
A GROUP of LTC Corporation's controlling shareholders from the Cheng family plan to make a voluntary conditional cash offer of S$0.925 per share for all ordinary shares of the mainboard-listed company which engages in property rental and development, and steel trading in Singapore and Malaysia.
At that price, the offer from their bid vehicle Mountbatten Enterprises Pte Ltd, is more than the highest closing price of LTC shares since Jan 1998 and also represents a premium of 44.5 per cent over the stock's last close of S$0.64 on Feb 8.
The offer price also represents a premium of approximately 46.1 per cent, 45.4 per cent, 44.1 per cent and 49.4 per cent above one-month, three-month, six-month and 12-month volume-weighted average prices respectively, LTC said in a filing with the Singapore Exchange.
Mountbatten has already secured irrevocable undertakings for approximately 48.54 per cent of LTC's total number of issued shares.
Mountbatten is the bid vehicle of LTC's controlling shareholders - LTC managing director Cheng Yong Liang and his brothers Cheng Yong Kim, Cheng Yong Kwang and Cheng Yoong Choong - along with Lion Investment (Singapore) Pte Ltd and Lion Realty Private Limited.
Lion Investment and Lion Realty are family investment vehicles, majority owned by the Cheng brothers.
While the offer price is final, Mounbatten may revise the offer if a competitive situation arises, LTC said.
It said Mountbatten believes the offer presents an opportunity for LTC's minority shareholders of LTC to realise the value of their investment in cash and to exit a thinly traded counter at an attractive premium.
The proposed takeover is conditional on Mountbatten receiving acceptances which would result in it or its concert parties holding at least 90 per cent of the issued shares at the close of the offer.
Mountbatten also reserves the right to reduce the 90 per cent acceptance condition to a lower level which is more than 50 per cent of the total number of issued shares, LTC added.
The documents setting out the details of the offer will be sent to shareholders between 14 and 21 days from the announcement of the offer.
OCBC is the sole financial adviser to Mountbatten in connection with the offer.