Eu Yan Sang offeror faces stumbling block in compulsory acquisition

Singapore

ALTHOUGH the public float in Eu Yan Sang International (EYSI) has fallen below the required 10 per cent for it to stay listed, the consortium making the bid to take the traditional Chinese medicine (TCM) group private is still not entitled to proceed with compulsory acquisition of shares that it does not already own.

Standing in the way are two substantial shareholders - Hillhouse Capital Management Ltd and TFW Fund - which have a combined stake of 10.6 per cent. Substantial stakes are not counted as part of public float.