Cheung Woh takeover offer turns unconditional

THE voluntary conditional offer to take Cheung Woh Technologies private at 28.5 Singapore cents per share has turned unconditional, the high-precision engineering product manufacturer said on Monday night.

Valid acceptances and the total shares owned, controlled or agreed to be acquired by the offeror Woh Seng Holdings and its concert parties amounted to 90.15 per cent as at 6pm on Monday.

The offeror, a company owned by Cheung Woh's finance and administrative director Law Yu Chui and her family members, will exercise its right of compulsory acquisition of all remaining shares and subsequently delist Cheung Woh from the Singapore Exchange (SGX).

The cash consideration of 28.5 Singapore cents per share represents a premium of about 92.9 per cent and 109.7 per cent over the volume-weighted average price per share for the three and six-month period respectively until May 4, 2021.

The implied price-to-net-asset-value ratio based on its unaudited consolidated net asset value per share of 23.67 Singapore cents as at end-February 2021 is 1.2 times.

Alternatively, shareholders can choose to receive one new share in the offeror per share at the same consideration. The new offeror shares will not be listed on any securities exchange.

The final closing date of the offer has been extended to 5.30pm on July 6, from 5.30pm on June 22 previously. SGX will suspend trading of the shares only at the close of the offer.

Cheung Woh supplies high-precision engineering products to the hard disk drive, communications, electrical and electronics, semiconductor and automotive industries. It has manufacturing facilities in Johor and Penang in Malaysia, and Zhuhai, China.

Its shares last closed at 28 Singapore cents on June 9.