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Kao family makes S$0.28 delisting offer for San Teh

THE Kao family that owns Mainboard-listed San Teh Ltd has made a voluntary conditional cash offer for the the property development and investment, hotel and PVC pipes and fittings firm in a bid to delist it.

Through the offeror, Singapore San Teh Real Estate, the Kaos are offering S$0.28 in cash for each San Teh Ltd share, in a deal that values San Teh Ltd at S$95.8 million.

This represents a premium of about 81.82 per cent over the last traded price per share as at Tuesday. On Tuesday, San Teh shares closed 6.94 per cent higher at S$0.154 before the company called for a trading halt.

The offer price is also 90.48 per cent higher than the volume-weighted average price (VWAP) per share over the last one month, and 72.84 per cent higher than the VWAP per share over the last 12 months.

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As at Thursday, the offeror and concert parties controlled 67.24 per cent of all shares in San Teh Ltd.

The offer will be conditional on the offeror having accumulated, by the close of the offer, not less than 90 per cent of the voting rights in San Teh Ltd.

The offer price is final and the offeror does not intend to revise the offer price, it said.

Since 1998, San Teh Ltd has not carried out any exercise to raise equity capital on the Singapore Exchange.

It is unlikely to require access to Singapore equity capital markets to finance its operations in the foreseeable future, the offeror said, so its listing status is not necessary.

It added: “The offeror is of the view that the delisting and privatisation of the company will provide the offeror and the company with greater control and management flexibility in utilising and deploying the available resources of the company and facilitating the implementation of any strategic initiatives and/or operational changes.”

CEL Impetus Corporate Finance is the financial adviser to the offeror.