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Hot stock: Rotary gains 9.8% as major shareholders bid S$0.46/share to delist
The controlling family of Rotary Engineering has teamed up with an investment arm of the Oman government to take the engineering services company private through a S$0.46 per share cash offer.
The offer is being made through Orochem Pte Ltd, a vehicle that is 64.7 per cent held by Rotary's controlling Chia Family and 35.3 per cent held by Oman Investment Fund.
The exit offer represents a premium of 25 per cent over the volume weighted average price of S$0.368 for the three months leading up to Rotary's trading halt on Sept 29. It is also a premium of 62 per cent over the company's net tangible asset value per share.
Orochem does not intend to revise the offer price.
Orochem's shareholders hold about 60.63 per cent of Rotary's issued shares, and they have given irrevocable undertakings to accept the offer.
The Chia Family's members include Rotary chairman Roger Chia, his brother and executive director Chia Kim Chua and Roger Chia's spouse and non-executive director Jenny Wong. The Chia Family, together with investment vehicle REL Investments Pte Ltd, together hold about 39.25 per cent of Rotary's shares.
Oman Investment Fund, which is part of the investment arm of the Omani Ministry of Finance, holds another 21.38 per cent of Rotary shares.
The offer will close at least 14 days after the offer documents have been despatched.
DBS Bank has been appointed sole adviser to for the delisting.
Rotary's shares gained 8.5 per cent, or 3.5 Singapore cents, to trade at 44.5 Singapore cents as at 9.39am on Monday after trading resumed. It eventually closed 4 Singapore cents - or 9.8 per cent - higher at 45 Singapore cents, with some 7.4 million shares changing hands.