LHN shareholders pave way for China’s Milkyway Chemical to make LHN Logistics offer
Megan Cheah
SHAREHOLDERS of LHN Limited voted in favour of wholly-owned subsidiary LHN Group disposing of all its shares in LHN Logistics , agreeing to accept a voluntary conditional general offer to be made by Shanghai-listed Milkyway Chemical.
This fulfils a pre-condition set out by Milkyway Chemical to make its S$0.2266 per share offer for LHN Logistics.
In an extraordinary general meeting (EGM) held on Monday (Jul 31), 244,447,450 shares were represented in the votes, out of 408,945,400 shares eligible to attend and vote for or against the proposed resolution.
Of the 244,447,450 shares represented in the EGM, nearly 100 per cent of shareholders holding 244,417,350 shares voted to allow LHN Group to dispose of all its shares in LHN Logistics and accept Milkyway Chemical’s offer once it is made.
Only 0.01 per cent, representing 30,100 shares, voted against the resolution.
Real estate management services provider LHN Limited owns an indirect 84.05 per cent stake in LHN Logistics through its wholly-owned subsidiary, LHN Group.
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Separately on Monday, JTC agreed to give written consent for a change in LHN Limited’s indirect ownership in Hean Nerng Logistics, subject to a payment of S$4.1 million to the statutory board.
This fulfils both pre-conditions required by Milkyway Chemical – a chemical supply chain service provider in China – for it to launch its voluntary general offer for LHN Logistics, which was announced in June.
The deal is expected to generate S$32 million in cash proceeds for LHN Limited.
Both LHN Limited and LHN Logistics are listed on the Catalist board. The parent company had spun off its logistics and transportation arm in 2022.
Shares of LHN Limited closed down 1.3 per cent or S$0.005 at S$0.385 on Monday, while LHN Logistics shares were flat at S$0.225.
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