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Founding family of Hupsteel offers to delist firm at S$1.20 per share

THE founding Lim family of Hupsteel Limited has launched a voluntary conditional cash offer of S$1.20 per share to delist the company from the mainboard of the Singapore Exchange.

The offer price, which is final, represents a premium of 51.9 per cent over the last transacted price per share of S$0.79 on June 27, being the last full market day immediately prior to the offer announcement.

The offer price also represents a premium of 58.33 per cent, 58.60 per cent, 58.56 per cent and 54.32 per cent over the volume-weighted average price per share for the one-month, three-month, six-month and 12-month periods respectively.

The offeror is Hercules Pte Ltd, a bid vehicle for the consortium members. The offer is conditional upon Hercules owning, controlling or agreeing to acquire shares representing 90 per cent of the company, including valid acceptances of the buyout offer, as at the close of the offer.

Pursuant to the irrevocable undertakings provided by Hennfa Investments Pte Ltd and each consortium member that holds shares directly in the company, the offeror has received irrevocable undertakings to accept the offer representing 54.16 per cent of Hupsteel.

The offeror said the offer provides shareholders who find it difficult to exit the company because of the low trading volume with an opportunity to realise their investment at a premium to the prevailing market prices.

OCBC Bank is the financial adviser to the offeror for the offer.