You are here

Hot Stock: Privatisation offer makes Sim Lian's share price pop - finally (Amended)

3_20540801 - 22_06_2011.jpg
SHARES of Sim Lian Group on Wednesday jumped 13.3 per cent to S$1.065, up 12.5 Singapore cents by 12.40pm after it resumed trading.

SHARES of Sim Lian Group on Wednesday jumped 13.3 per cent to S$1.065, up 12.5 Singapore cents by 12.40pm after it resumed trading.

This followed Monday's announcement of a privatisation offer from a consortium led by the company's founder.

The stock price has not been at this level for a year.

It was also approaching the price of S$1.08 per share that Coronation 3G is offering in its voluntary conditional cash offer for all the outstanding shares in Sim Lian that it doesn't already own.

In the offer announcement, the offeror said: "The shares have not transacted at or above the offer price since the company's listing in 2000. The offer provides an opportunity for shareholders who wish to realise their investment in the shares to do so in cash, at a compelling premium over the prevailing market prices and without incurring brokerage fees."

The offeror has secured irrevocable undertakings representing 80.36 per cent of the total number of issued shares in Sim Lian from Sim Lian Holdings and a number of individuals from the Kuik family.

The offer price, which is final, represents a premium of 14.9 per cent over the last traded price of S$0.94 per share on Aug 4, 2016.

Amendment note: An earlier version of the story said the offer price is at a premium to net asset value, which is incorrect. The sentence has been removed.