Excelpoint Technology receives S$1.93 per share acquisition offer

Singapore

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

In a joint announcement by Excelpoint Technology and the offeror WT Semiconductor Holdings to the bourse on Wednesday (Apr 13), the parties 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. But it had traded briefly at over S$2 shortly 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.