TEE Int'l CEO offers S$0.215 or stock per share to take company private

TEE International chief executive Phua Chian Kin is offering 21.5 Singapore cents or new equity per share to take the company private through a scheme of arrangement, the engineering and real estate group announced on Saturday.

Mr Phua is making the offer through wholly owned vehicle Oscar Investment. Under the proposed scheme, TEE shareholders may receive cash or one new share in Oscar for every TEE share held. It was not disclosed how many shares of Oscar have already been issued.

The offer price represents a 12.6 per cent premium to TEE's closing price of 19.1 Singapore cents on March 24, before trading in the stock was halted for the announcement. Trading will resume on Monday.

The scheme requires approval from at least 75 per cent of TEE shareholders; if approved, TEE shareholders who do not state their preference will receive cash for their shares.

Oscar has secured undertakings from existing shareholders, including Mr Phua and his 56.19 per cent interest in TEE, that hold a combined 69.58 per cent stake in TEE. Those shareholders have agreed to support the scheme and to receive shares in Oscar instead of cash.

If the scheme is approved, Mr Phua will delist TEE.

"The offeror believes that the acquisition and the privatisation of the company would provide greater operational flexibility to the group," the company said.

The scheme document will be sent to shareholders soon. TEE directors have appointed Provenance Capital as the independent financial adviser.