Fabchem China's general offer closes on May 3

Singapore

FABCHEM China shareholders will have until the business close of May 3 to accept a S$0.158 per share mandatory conditional general offer by Singapore businessman Henry Wee for all the shares he does not already control, according to an offer document sent out on Friday.

The offer is conditional upon offering vehicle Triple Vision obtaining a majority control of the explosives maker. Triple Vision, which is owned by Mr Wee, currently holds a 39.55 per cent stake in Fabchem China.

Fabchem China's independent directors will appoint an independent financial adviser and their recommendations will be sent to shareholders within 14 days.

The shares last traded at S$0.16 on March 27. The company is currently on the Singapore Exchange's watch-list.

The offer comes after Mr Wee bought a 29.9 per cent stake in Fabchem China from DNX Australia for S$2.2 million, or S$0.158 per share. The offer price represents a 6.76 per cent premium over the volume-weighted average price of Fabchem shares over the last 12 months.

Following the close of offer, the offeror will conduct a comprehensive review of the operations, management and financial position of Fabchem China and evaluate various strategic options. Pending this review, Fabchem China will continue with its existing activities. If Mr Wee attains a shareholding of at least 90 per cent, he plans to delist the company.

Fabchem China's second-largest shareholder is Fort-smith Investments, which holds a 32.35 per cent stake. Fortsmith is owned by Sun Bowen, the former managing director of Fabchem China, who is now its non-executive and non-independent director. Mr Sun is also executive chairman of Imperium Crown.

Mr Wee also holds shares in Imperium Crown, and in recently listed Sim Leisure Group.