LHN Logistics privatisation offer turns unconditional, loses free float
Tan Nai Lun
THE voluntary conditional general offer made by Milkyway Chemical to take over LHN Logistics has been declared unconditional in all respects.
As at 6pm on Monday (Aug 21), the total number of shares owned, controlled, acquired or agreed to be acquired by the offeror amounted to 90.6 per cent of the total number of issues shares of LHN Logistics, meeting the minimum acceptance condition of the offer.
As a result, the closing date of the offer has been extended to Sep 27 from Sep 13.
As the offeror has received valid acceptances of not less than 90 per cent of the total number of issued shares, it also intends to exercise its right of compulsory acquisition, according to a bourse filing on Monday.
Following that, the offeror will delist LHN Logistics from the Catalist board of the Singapore Exchange (SGX).
The offeror intends to privatise the company and does not intend to preserve its listing status, given that it has also lost its free float requirement as at the announcement.
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Earlier in August, Chinese chemical supply chain service provider Milkyway Chemical made a voluntary general offer for all the issued and paid-up ordinary shares in the Catalist-listed company at an offer price of S$0.2266 per share in cash.
This came after JTC had given the nod to the takeover offer, subject to a payment of S$4.1 million to the statutory board. Shareholders of LHN had also voted in favour of disposing its entire stake in LHN Logistics to Milkyway Chemical.
On Monday, shares of LHN closed flat at S$0.33, while shares of LHN Logistics closed up 2.2 per cent at S$0.23.
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