Darco Water Technologies' deputy chairman making conditional cash offer

Nisha Ramchandani

Published Tue, May 5, 2020 · 02:23 PM

DARCO Water Technologies' deputy chairman Wang Zhi is launching a mandatory conditional cash offer for the shares he does not own in the company, at S$0.17 per share.

According to the offer announcement released to the Singapore Exchange on Tuesday night, he has acquired about 13.39 million ordinary shares, or a 14.27 per cent stake, in Darco at S$0.17 per share from Wuhan Liankai Investment Co for about S$2.28 million. Before this, he already held or controlled about 27.68 million shares, or a stake of 29.5 per cent in Darco.

With the acquisition, his shareholdings in Darco will be taken to 43.77 per cent, requiring him to make a general offer in line with the Singapore Code on Take-overs and Mergers.

At S$0.17 per share, the offer price is a premium of 30.77 per cent over the last transacted price per share on April 30, the last full day of trading before the announcement. It also represents a premium of 33.33 per cent and 30.57 per cent respectively over the volume-weighted average price (VWAP) per share for the one-month and three-month periods up to (and including) April 30.

However, it is a discount of 15.88 per cent to the VWAP per share for the six-month period up to the last trading date.

The offer will be conditional on the offeror having accumulated, by the close of the offer, not less than 50 per cent of the total voting rights in Darco.