Baker Tech's purchase of CH Offshore shares triggers offer

OIL and gas equipment supplier Baker Technology on Thursday made a mandatory unconditional cash offer for all the shares in CH Offshore, a vessel chartering firm, it does not already own for S$0.13 per share.

This was triggered after it bought 217.8 million shares, representing a 30.9 per cent interest in CH Offshore, at S$0.115 each from Singapore-listed Falcon Energy Group.  

It also acquired another 153.8 million shares, representing 21.83 per cent in CH Offshore, for S$0.13 per share from a private company, SZ Offshore Investment.

The acquisition of the combined 52.72 per cent stake in CH Offshore triggered the need for it to make the offer. But Falcon Energy has taken an irrevocable undertaking to continue to hold onto its 239.8 million shares, representing a 34.01 per cent stake in CH Offshore, and not accept the offer.

As a result, Baker Technology said it does not expect to receive enough valid acceptances to meet the threshold for a compulsory acquisition.

Baker Technology's offer price represents a 13.1 per cent discount to the volume-weighted average price of CH Offshore shares traded on the Singapore Exchange for the three-month period prior.

In a circular, it said: "The offer price is final and the offeror does not intend to revise the offer price." It also does not intend to extend the offer unless there is a "competitive situation", and said that it will not revise the offer terms. 

Baker Technology said that the offer is in line with its strategy to "explore new business opportunities to increase the group's revenue stream and expansion of its product offerings through acquisitions and strategic alliances".

It plans to keep CH Offshore listed following completion of the offer. The offer will open for 28 days after the date on which the offer document is posted. 

RHTC, as the financial adviser to Baker Technology, confirmed that it has sufficient financial resources to satisfy a full acceptance of the offer.