Eu Yan Sang loses free float after Teng Ngiek Lian's Target fund raises stake

THE percentage of shares in Eu Yan Sang International held in public hands has dropped below the minimum 10 per cent required by the Singapore Exchange, the traditional Chinese medicine seller said in a Singapore Exchange filing on Thursday night.

This happened after boutique fund manager Target Asset Management, controlled by Teng Ngiek Lian, raised its stake in Eu Yan Sang to 5.04 per cent from 4.93 per cent on Wednesday.

Eu Yan Sang said on Thursday that the fund manager had bought half a million Eu Yan Sang shares on the open market on Aug 3 for S$303,350 or roughly S$0.607 apiece on average via its TFW Fund.

The offeror and its concert parties control or have received valid acceptances amounting to 80.76 per cent of the mainboard-listed group as at Aug 1, Eu Yan Sang said. It added that a substantial shareholder, Hillhouse Capital, has a roughly 5.56 per cent interest in Eu Yan Sang.

These substantial stakes plus the one held by Target Asset Management add up to slightly over 90 per cent.

The bourse may suspend trading in the stock, Eu Yan Sang said, noting that the offeror has said that it does not intend to keep it listed and does not intend to take any steps for any trading suspension in its stock to be lifted.

Eu Yan Sang shares last traded at S$0.61 on Wednesday, up half a cent from the previous day.