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Controlling shareholder of Chew's Group enters into conditional agreement to sell stake
THE controlling shareholder of fresh egg producer Chew's Group, Fenghe Investment Holding, has entered into a conditional sale and purchase agreement (SPA) with Goldhill Trust to sell its 68.14 per cent stake in Chew's for S$12.13 million.
Upon completion of the acquisition, Goldhill Trust will make a mandatory general offer for the rest of the group at S$0.2107 per share. This is a discount of 27.3 per cent to the last transacted price of Chew's shares, S$0.29, on the Singapore Exchange on Aug 21, the last trading day before the announcement.
The pre-conditions are to be fulfilled on or before Oct 8 - unless extended - failing which the SPA will be terminated. This comes after Goldhill Trust and Fenghe entered into a non-legally binding term sheet on June 8 for the proposed acquisition.
The shareholders of Goldhill Trust are Tan Pei Hong, Alex and Tan Theng Hong, Amos. Goldhill Trust intends to undertake a review of the group's business to strengthen the financial position and identify areas in which potential may be optimised or the strategic direction and operations of the group can be enhanced, the filing to SGX said.
The board of Chew's Group will be appointing an independent financial adviser in due course to advise the independent directors on the offer.