Informatics Education receives S$0.011 per share exit offer from major shareholder

WATCH-LISTED company Informatics Education received an exit offer by Berjaya Leisure Capital to buy all of the shares in the company which it does not already own at S$0.011 per share.

Berjaya Leisure also announced that it is offering to acquire all outstanding warrants issued by Informatics at a nominal price of S$0.0001 per warrant. As at the announcement date, Informatics has 35,041,371 warrants in issue – or 16.5 per cent of the company’s share capital – at an exercise price of S$0.05 per share. 

The offeror does not intend to revise its offer prices for the proposed exit nor the warrants. 

Both the exit and warrant offers are unconditional, and in connection with Informatics’ directed delisting from the Singapore Exchange (SGX). 

No extraordinary general meeting will be held with shareholders to discuss the directed delisting. As at the announcement date, the share capital of Informatics was 177,339,649 shares amounting to some S$34.7 million. 

The offer represents an 8.9 per cent premium to the benchmark price of S$0.0101, based on the stock’s volume-weighted average price (VWAP) per share for one month up until its last trading day on Jul 28. For the three-month period up until the counter’s last trading day, it represents a 4.8 per cent premium to the S$0.0117 benchmark price. 

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However, at the VWAP per share for the six-month and 12-month period up until its last trading day, respectively, the offer represents a 6 per cent and 17.3 per cent discount. 

A company will be placed on the SGX’s watch list if it records pre-tax losses for the three most recently completed consecutive financial years (based on audited full year consolidated accounts), and has an average daily market capitalisation of less than S$40 million over the last six months.

Informatics, which provides IT training and education and was first listed on SGX in 1993, had been suspended from trading in the SGX since Jul 28 this year, after receiving a notification for delisting by SGX. (*see amendment note) 

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SGX also rejected Informatics’ application for a 12-month extension to meet the requirements for removal from the watch list, made on Jun 3, 2022. It had earlier granted the company a 12-month extension on Nov 23, 2020, and a six-month extension on Nov 30, 2021.

Berjaya Leisure Capital, which owns 67.42 per cent of Informatics, is a wholly-owned subsidiary of the Berjaya Corporation. Both Berjaya Leisure Capital and Berjaya Corporation are listed on the Bursa Malaysia.

Shares of Informatics Education remained unchanged at S$0.008 since its trading suspension on Jul 28.

*Amendment note: An earlier version of this story indicated that Informatics Education was first listed on SGX in 1983. The company was founded in 1983, and first listed on SGX in 1993.