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A consortium led by Poh Tiong Choon Logistics' chairman, Poh Choon Ann, is making an offer to takeover the Singapore-listed firm at S$1.30 a share, valuing one of Asia's largest land transport providers at S$275.5 million.
The offer is made by Respond Logistics, a vehicle used by the consortium comprising Mr Poh and Tower Capital Logistics L.P., an affiliate of Tower Capital Asia. So far, it has obtained irrevocable undertakings from owners holding 66.7 per cent shares to accept the offer. On completion of the deal, Poh Tiong Choon will be privatised, and delisted from the Singapore Exchange.
Mr Poh, who is also the Chief Executive Officer, said the company has been operating in a challenging business environment and continued to be affected by costs and the tightening of the labour market and interest rate fluctuations.
"We believe the offer price presents an attractive offer to the shareholders of the company who find it difficult to exit the company as a result of the low trading volume in shares,'' Mr Poh said.
He added that the delisting will enable the company save on expenses relating to the maintenance of a listed status and focus its resources on its business operations.
At S$1.30 a share, the offer price represents a 32.5 per cent premium to the 1-month volume weighted average price per share.
The trading volume of the shares has been generally low, with an average daily trading volume of about 12,000 shares for the 1 month to September 19, 2017.
Poh Tiong Choon was founded in 1950 and was listed on the main board of the Singapore Exchange in 1999. It was founded by the two eldest Poh brothers. Mr Poh, who is in his early 80s, joined the company in 1964. He has a deemed interest of 24.27 per cent in the company.