Controlling shareholder mulls sale of Chew's Group

FRESH egg producer Chew's Group said on Friday night that its controlling shareholder, Fenghe Investment, has entered into a term sheet to sell its entire 68.14 per cent stake in the company to a potential third-party purchaser.

Fenghe Investment mixes the interests of various Chew family members, including executive chairman Chew Chee Bin. The identity of the purchaser was not disclosed.

Under the proposed sale, Fenghe Investment will swap its stake for S$12.1 million in cash, or S$0.2107 per share of the Catalist-listed Chew's Group.

A definitive agreement on the sale is expected to be made in two weeks' time. If it goes through, the purchaser will trigger a mandatory general offer for the rest of the company.

Shares of Chew's Group rose one Singapore cent or 4.26 per cent to S$0.245 on Friday before the announcement was made.