Chip Eng Seng offer turns unconditional; closing date extended to Jan 19

CHIP Eng Seng chairman Celine Tang and her husband Gordon Tang’s mandatory cash offer to acquire the property player at S$0.75 per share has been declared unconditional in all respects.

This comes after the offeror received valid acceptances amounting to over 405.7 million shares or 51.73 per cent of the company as at 6 pm on Wednesday (Dec 14). It includes acceptances received from the offeror’s concert parties, which amount to some 386.4 million shares representing a 49.27 per cent interest in the company.

Together with valid acceptances of the offer, the total number of shares owned, controlled or agreed to be acquired by the offeror and its concert parties represent a total of 410.5 million shares or 52.34 per cent of the company.

This also represents 50.41 per cent of the maximum potential issued share capital of Chip Eng Seng in the event all outstanding company options are validly exercised, and all outstanding awards granted under the company’s share plan validly vested.

As a result of the offer turning unconditional, the offer’s closing date has been extended by two weeks to 5.30 pm on Jan 19, 2023, from the same time on Jan 5.

The Tangs’ privatisation bid for Chip Eng Seng was first launched as a voluntary conditional cash offer on Nov 24 at S$0.72 per share through the couple’s investment holding company, Tang Dynasty Treasure. The offer subsequently turned mandatory after the Tangs enlarged their shareholding percentage through a purchase of new shares on Nov 25.

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On Dec 2, the offer price was raised by 4.2 per cent to S$0.75 per share. This exceeds the shares’ highest closing price in the three-year period prior to, and including, the holding announcement date on Sep 7.

To take the company private, the Tangs are required to attain more than 90 per cent of Chip Eng Seng’s shares. The couple recently privatised Singhaiyi Group, which was delisted on Jan 31 this year, at a significant discount to its net asset value.