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Hupsteel to appoint independent adviser for Lim family's offer; requests lifting of trading halt

MAINBOARD-LISTED steel trader Hupsteel Limited said on Monday morning it will appoint an independent financial adviser (IFA) "in due course" with regard to the founding Lim family’s voluntary conditional cash offer of S$1.20 per share to delist the company.

On Monday before the market opened, Hupsteel also requested that its trading halt be lifted. It had called for a trading halt on Friday morning.

A circular containing, among other things, the IFA’s advice and the independent directors’ recommendation will be sent to shareholders within 14 days from the despatch of the offer document.

The Lim family's offer price, which is final, represents a premium of 51.9 per cent over the last transacted price of S$0.79 on June 27.

The offer price also represents a premium of 58.33 per cent, 58.6 per cent, 58.56 per cent and 54.32 per cent over the volume-weighted average price 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.

Hercules has secured irrevocable undertakings from Hennfa Investments and each consortium member that holds shares directly in the company, Hupsteel said in its Friday filing. The undertakings to accept the offer amount to 54.16 per cent of Hupsteel shares.

OCBC is the financial adviser to Hercules for the offer.