SHARES of Otto Marine jumped on Thursday, after executive chairman and controlling shareholder Yaw Chee Siew proposed a voluntary delisting that valued the offshore and marine player at about S$68 million.
Mr Yaw, who owns 61.2 per cent of Otto, offered to buy out the remaining shareholders at an exit price of 32 cents per share. This represented a premium of 39.1 per cent over the share price on June 1, the last full day of trading in the shares before the company called for a trading halt.
The stock closed 8.5 Singapore cents - or 37 per cent - higher at 31.5 Singapore cents on Thursday.
The delisting is subject to holders of Otto Marine Services' multi-currency term notes agreeing to certain terms. Otto Marine Services is a unit of the group.
The terms of the notes, which mature on Aug 1, stated that in the event of a delisting, bondholders have the option to redeem the principal outstanding on the notes plus interest.
A meeting will be held to seek bondholders' approval to extend the maturity date of the notes for a further six months or until the date on which a delisting of the company has been completed, and to agree not to exercise or to waive their option to redeem the notes. The notes will be redeemed after and subject to the successful delisting, the company said.