CONSTRUCTION and engineering company Lian Beng no longer meets the free float requirement of the Singapore Exchange (SGX), now that the percentage of its shares held by the public is less than 10 per cent, the mainboard-listed company said in a bourse filing on Tuesday (Jul 4).

This means the trading of its shares will be suspended at the close of the offer on Jul 7, 5.30 pm to take the company private.

SGX requires companies to ensure at least 10 per cent of their total number of shares be held in public hands, a rule also known as the free float requirement.

Earlier in April, Lian Beng’s controlling Ong family, through investment holding company OSC Capital, made a voluntary unconditional cash offer to buy out minority shareholders at S$0.62 a share. The plan is for Lian Beng to become a wholly owned subsidiary.

The company later raised the offer to S$0.68 a share, after the Securities Investors Association (Singapore) said the initial amount did not appear to be “fair or reasonable”.

As at Tuesday, the total number of shares owned, controlled or agreed to be acquired by OSC Capital and its concert parties, as well as valid acceptances of the offer, amount to an aggregate 450,401,020 shares, representing approximately 90.14 per cent of the total number of issued shares, said the filing.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Lian Beng noted that in the event that OSC Capital acquires not less than 90 per cent of the total number of issued shares, it may choose to compulsorily acquire all the shares of shareholders who have not accepted the offer.

It added that OSC Capital “does not intend to support or take any step” to restore its free float status and for any trading suspension to be lifted.