Lian Beng's Ong family makes S$0.50 per share mandatory conditional cash offer following married deal

ON Monday, the Ong family which controls civil engineering and construction group Lian Beng announced a mandatory conditional cash offer at 50 Singapore cents per share, following a married deal.

The family had, through its investment holding company Ong Sek Chong & Sons, acquired nearly 5.9 million shares or about 1.2 per cent of the total number of issued and paid-up ordinary shares issued by Lian Beng Group.

Prior to the market acquisition, Ong Sek Chong & Sons and its concert parties held about 43.6 per cent of voting rights in Lian Beng. With its recent acquisition of more than 1 per cent of shares in Lian Beng, it was required to extend a mandatory offer.

The offer price represents a premium on the last traded price of 47 Singapore cents on June 11, the last trading day, the announcement said.

On Monday, Lian Beng shares rose 3.2 per cent or 1.5 cents to close at 48.5 cents.

Ong Sek Chong & Sons has an issued and paid-up share capital of S$100,000 comprising 100,000 ordinary shares, of which 40 per cent are held by Ong Pang Aik, Lian Beng's chairman and managing director; 36 per cent by Ong Lay Huan, Lian Beng's executive director; 12 per cent by Ong Lay Koon, another executive director at Lian Beng; and the remaining 12 per cent by Ong Lee Yap.

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The former three shareholders, along with Ong Phang Hui and Ong Phang Hoo, sit on Ong Sek Chong & Sons' board of directors.

The trading volume of Lian Beng's shares has been generally low, the announcement said, with an average daily trading volume of 241,529 shares, or 0.05 per cent of total issued shares, in the one-month period up to and including the last full trading day prior to the announcement.

The Ongs intend to maintain Lian Beng's listing status and do not intend to exercise any rights of compulsory acquisition.

Ong Sek Chong & Sons has confirmed with the Securities Industry Council of Singapore that it will not be required to make an offer for SLB Development, in which Lian Beng owns some 708.1 million, or about 77.6 per cent, of issued and paid-up ordinary shares.

It will not be making an offer for SLB Development in connection with the offer, which, if it becomes unconditional, will result in Ong Sek Chong & Sons acquiring statutory control and indirectly acquiring effective control of SLB Development.