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IFA and independent directors advise Cityneon shareholders to reject offer

INDEPENDENT directors of Cityneon Holdings Limited recommended that shareholders reject the mandatory unconditional cash offer from Lucrum 1 Investment.

The recommendation was in line with the advice given by RHT Capital, advisers to the independent directors, which said the financial terms are "not fair and not reasonable".

"If shareholders wish to realise their investments in the company, they can choose to sell their shares in the open market if they obtain a price higher than the offer price (after deducting transaction costs)," the directors said in a circular despatched to shareholders on Thursday.

Lucrum 1 Investment had in July said it has no intention to revise the offer price when it offered to buy shares of Cityneon, other than those already owned, at 90 Singapore cents apiece. The mandatory takeover was triggered after Lucrum 1 Investment bought a 52.51 per cent stake in Cityneon.

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Lucrum 1 Investment is a special purpose vehicle owned by Massive Right Investments Limited, Philadelphia Investments Ltd, and Mutual Power International Limited.

At 9:49am, shares of Cityneon were down 0.5 Singapore cent, at 94 cents each.