AF Global's offer for all the offer shares in LCD Global Investments is a "viable exit alternative" for LCD shareholders, said the company on Monday.
This is especially so for shareholders who "do not wish to be subject to the risk of significant dilution if they do not subscribe for their pro rata entitlement or who do not wish to inject additional funds into LCD", said the consortium, which comprises Aspial Corporation and Fragrance Group.
AF Global has made an offer of S$0.33 for all the offer shares in LCD Global Investments, provided that LCD announces via SGX, before 6pm on Jan 14, that it will either cancel its rights issue or defer the lodgement of the offer information statement within a month after the close or the lapse of the offer. In the event LCD does not announce the rights issue cancellation or deferral, AF Global will offer S$0.30 for each offer share.
The deferral offer price presents an opportunity for LCD shareholders to realise their investment at almost double the price of S$0.17 under the previous offer, said AF Global.
RDL Investments - the shareholders of which are Raymond Lum, David Lum, and Kelvin Lum - had, in April last year, made a general offer to LCD shareholders at an offer price of S$0.17 per LCD share. The offer lapsed in July last year, after it failed to garner sufficient acceptances. The Lum family then sold about 29.5 per cent of the issued LCD shares to JTrust Asia in September. JTrust subsequently announced that it is proposing to carry out a rights issue which will be fully underwritten by JTrust.
"The offeror believes that LCD Shareholders should be given a fair opportunity to consider this offer and that the rights issue cancellation or deferral is in the best interests of the company and LCD shareholders," said AF Global.
The original article stated that AF Global had "previously" made an offer of S$0.33 for all the offer shares in LCD Global Investments. This is incorrect, as AF Global announced its offer this morning. The article has been amended to reflect that.