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TIH discloses possible change of control, but says price will be lower (Amended)

Wednesday, March 22, 2017 - 08:53

ANOTHER restructuring might be on the way for listed private equity fund TIH Limited, which said on Wednesday morning that there are discussions that might lead to a change of control at the company.

However, the price is likely to be lower than its last traded price.

The structure of the transaction if entered into will be subject to regulatory approval, which is in the process of being applied for.

"The price at which such transaction, if entered into, will likely be lower than the closing price per share in the company of S$0.695 a share on March 21, 2017," TIH said.

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TIH, formerly Transpac Industrial Holdings, was the first investment company to list in Singapore in 1994, at S$5 a share. With its investment manager backed by DBS Bank and NatSteel, it was meant as an investment vehicle for individuals looking to invest a part of their pension plans in private equity.

In 2004, Hong Kong-based hedge fund Argyle Street Management made a bid for the firm. Argyle founding shareholder and chief investment officer Kin Chan is TIH chairman.

In 2014, the firm restructured itself again and completed a transaction with state investor Temasek. It partially acquired from Temasek stakes in manufacturing services firm CEI Contract Manufacturing and Japan life insurer Mitsui Life Insurance.

On Tuesday, its share price shot up 16.8 per cent or 10 cents to S$0.695, drawing a Singapore Exchange query.

In reply, it disclosed the change of control discussions and said there is no assurance any transaction will result. It also highlighted how its share price is linked to that of property developer OUE Limited, which it owns a stake in and has performed well recently.

Amendment note: An earlier version of the article stated that Temasek invested in TIH manager TIH Investment Management in 2014, which is incorrect as the manager is wholly owned by the listed company. The 2014 transactions left Temasek with a 45 per cent stake in TIH subsidiary TIHT Investment Holdings, which holds the assets Temasek partially divested to TIH.

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