Hot stock: Otto Marine jumps on S$68m delisting offer
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.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Capital Markets & Currencies
Morgan Stanley strategists see inflation as key for path of US stocks
US dollar soft on renewed Fed rate cut bets; yen on back foot
South Korea’s probe alleges 211.2 billion won of illegal short trades
Asia: Markets build on rally as US jobs data boost rate cut hopes
Zero-day options boom will only grow even as some investors fear disaster
Singapore stocks open in the black on Monday; STI up 0.3%