Excel First Investments launches repeat takeover, privatisation bid for Kingboard Copper

EXCEL First Investments on Thursday made a repeat takeover-cum-privatisation offer for shares in Kingboard Copper Foil Holdings at S$0.60 each in cash.

This follows its earlier attempt two years ago which failed after independent financial advisers and company independent directors advised shareholders to reject the offer at S$0.40 a share because they deemed it "not fair and not reasonable".

The offeror is a wholly-owned subsidiary of Hong Kong-listed Kingboard Laminates Holdings, which is, in turn, 70.93 per cent owned by Hong Kong-listed Kingboard Holdings, which manufactures and sells laminates, printed circuit boards, chemicals and magnetic products, and also delves in property development and investment.

The offeror has an 87.96 per cent direct and indirect combined stake in the company.

The offer price is a 25.3 per cent premium to the volume-weighted average price of the shares for the three-month period prior. The company's net asset value as at end-2018 was 380.27 HK cents (65.6 Singapore cents) per share.

The offer is unconditional. The offeror plans to exercise its right of compulsory acquisition if it succeeds in its offer.

It said that it is undertaking the offer to facilitate management and operational control over the company. On completing the offer, it plans to do a strategic and operational review to help the company attain synergies, scale, cost efficiencies and growth potential.

Furthermore, a delisting will enable the offeror, together with the management of the company, to have a longer horizon to plan its business. It will also eliminate listing-related expenses which can be channelled towards its business operations.

Kingboard Copper Foil manufactures and trades polyvinyl butyral and related products. Its shares closed at a nine-year high of S$0.55 before its trading halt on Monday.