Excelpoint Technology receives S$1.93 per share acquisition offer

A COMPANY wants to acquire Excelpoint Technology BDF for S$1.93 per share in cash, valuing the mainboard-listed electronics component distributor at about S$232.2 million.

In a joint filing with WT Semiconductor Holdings to the bourse, Excelpoint Technology said the offer price exceeds the net asset value per share of US$0.9046 as at end-December 2021, as well as the counter's closing prices in the past 10 years.

The counter hit its lowest at S$0.26 in June 2012 during the recent 10-year period. It had traded briefly at over S$2 after listing in January 2004.

The company in March stated that talks were under way on a potential transaction involving its shares when addressing the price movements of the counter, catapulting the share price to as high as S$1.84 thereafter.

The counter was halted after trading hours on Tuesday (Apr 12) when the price hit a 10-year high at S$1.79, but the halt lifted on Wednesday evening after this offer was made public.

Founded by CEO Albert Phuay, Excelpoint Technology is said to serve over 4,000 customers. The company reported a 51.5 per cent jump in net profit to US$12.6 million for the second half of FY2021, on a 43.2 per cent rise in revenue of US$857.6 million.

According to the filing, Phuay - who owns a total of about 42 per cent of direct and indirect stakes in Excelpoint Technology through a vehicle and his wife - has given an irrevocable undertaking to vote for the offer and reject any competing offer by a third party.

And Phuay will, post-acquisition, invest for a 20 per cent stake in the offeror WT Semiconductor Holdings, and remain as the CEO of Excelpoint Technology, which will then be delisted.