Lizhong free float falls below 10% mark

Aluminium alloy wheel maker Lizhong Wheel Group's directors have flagged that its free float has dropped below the ten per cent mark to 6.83 per cent as at 5pm on Sept 21.

This comes after Berkley International launched a conditional cash offer for the shares in Lizhong Wheel Group that it doesn't already own.

"As the company no longer meets the free float requirement of the Listing Rules, shareholders should note that the Singapore Exchange may suspend trading of the shares on the close of the offer (on Oct 16)," Lizhong said on Tuesday.

At 50 Singapore cents per share, the offer price is almost double the 25.5 Singapore cent trading price of the shares on Aug 6, which was before the takeover was first announced.

Offeror Berkley is an investment vehicle of the Zang family, which owns the majority stake in Lizhong Wheel through Li Zhong Investment.

Berkley cited low trading liquidity of Lizhong Wheel shares, greater management flexibility and the burden of compliance costs as reasons to take the company private.