Huan Hsin's chairman and MD make exit offer at 1.6 cents a share

WATCH-LISTED Huan Hsin has received an exit offer from a vehicle controlled by its chairman Hsu Hung Chun and managing director Hsu Cheng Chien, at an offer price of S$0.016 per share.

In a Wednesday bourse filing, the electronics contract manufacturer disclosed that the offeror is Pacific Moment Holdings, a British Virgin Islands-incorporated vehicle owned by the Hsus. Pacific Moment now owns 38.17 per cent of the company together with concert parties, which include other entities controlled by the Hsus and their family members.

The S$0.016 offer price represents a 14.3 per cent premium to Huan Hsin's S$0.014 last-traded price before the counter was suspended on Dec 20, 2018. For FY2018 ended December, Huan Hsin recorded a loss per share of S$0.0062, and was in a net liabilities position of S$74.7 million.

"The exit offer price is therefore at a premium when compared with the net liability position of the group. The offeror does not intend to increase the Exit Offer Price save in a competitive situation," Huan Hsin said in its filing.

Pacific Moment and its concert parties will need to obtain at least 50 per cent of Huan Hsin's total voting rights for the offer to turn unconditional.

The Singapore Exchange had previously told Huan Hsin to delist in December 2018 due to its repeated failure to meet listing requirements for profitability and market value. Huan Hsin's appeal against the delisting was rejected.

Pacific Moment has no immediate plans to change Huan Hsin's existing business, redeploy its fixed assets, terminate any employees other than in the ordinary course of business or to list the company on another stock exchange.