LTC Corp takeover offer declared unconditional after share threshold lowered

A BUYOUT bid of mainboard-listed LTC Corporation has been declared unconditional, after regulators green-lit lowering the acceptance threshold from 90 per cent of all shares to 50 per cent, the company said on Monday morning.

As at April 6, shares validly tendered in acceptance of the offer amounted to a combined interest of 84.21 per cent - satisfying the reduced acceptance condition that was approved by the Securities Industry Council.

The closing date for the offer has been extended to April 25 at 5.30pm - or any later date that the offeror may announce - from Monday evening previously.

After an offer has become or is declared unconditional as to acceptances, it must remain open for acceptance for at least 14 days from its original close date.

Meanwhile, shareholders who have validly accepted the offer are allowed to withdraw their acceptances within eight days of the written notification of the reduction of the acceptance condition being sent out.

Even so, some 78.25 million shares, or 50.01 per cent of all shares, are held by Mounbatten Enterprises - the bid vehicle of the Cheng family controlling shareholders.

The vehicle is controlled by LTC managing director Cheng Yong Liang and his brothers Cheng Yong Kim, Cheng Yong Kwang and Cheng Yoong Choong, as well as majority-owned family vehicles Lion Investment (Singapore) Pte Ltd and Lion Realty Private Limited.

With the buyout offer, they intend to seek a voluntary delisting of the company, turning LTC into a wholly owned subsidiary of the offeror.

The Cheng bid vehicle announced plans for the cash offer in February, at an offer price of S$0.925 a share - or a 44.5 per cent premium over the stock's previous close on Feb 8.

Shares of LTC, which deals in real estate and steel, last changed hands at S$0.93 on April 6.

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