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Cityneon's public float falls below 10%, to be delisted

CITYNEON Holdings' public float has fallen below the 10 per cent level required under listing rules, said its buyout offeror, who remains intent on delisting the company.

According to Thursday's exchange filing, as at 5pm on Dec 5, offeror West Knighton – a special purpose vehicle controlled by Cityneon executive chairman and group chief executive Ron Tan and by Hong Kong entrepreneur and investor Johnson Ko Chun Shun – controlled a 91.82 per cent stake in Cityneon. Cityneon creates licensed interactive exhibitions based on blockbuster entertainment franchises such as Marvel's Avengers superheroes, Jurassic Park and the Transformers.

West Knighton currently owns a 68.95 per cent stake that it acquired at S$1.30 per share for S$219.3 million. Since it made its general offer, it has also acquired about 4.17 per cent of Cityneon's shares on the open market and secured acceptances for a further 18.7 per cent. Cityneon shares last closed at S$1.31 on Wednesday.

The offerer said it does not intend to restore the public float, and remains intent on delisting the company. However, the offeror requires a 96.9 per cent stake in Cityneon before it can compulsorily acquire and delist Cityneon.

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Shareholders have until 5.30pm on Dec 12, 2018 to accept the offer, which is final and unconditional.

The offeror has said that the delisting and privatisation of the company will provide the offeror and the company with greater control and management flexibility in the implementation of strategic initiatives and operational changes of the group, as well as dispense with compliance costs associated with the maintenance of its listed status.