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LTC's controlling Cheng family to seek voluntary delisting, offer S$0.925 per share for exit

THE controlling shareholders of LTC Corp will propose a voluntary delisting and make an exit offer at 92.5 Singapore cents per share after failing to force compulsory delisting from their earlier takeover bid for the steel and property group.

Mountbatten Resources, a vehicle controlled by the family of managing director Cheng Yong Liang, has told the board of LTC that it will propose a voluntary delisting to shareholders, LTC announced on Friday. As part of the delisting proposal, Mountbatten will make an exit offer that matches the controlling shareholders' bid from its recently concluded takeover offer. Following that takeover bid, the Cheng family and its concert parties currently hold an 88.44 per cent stake in LTC.

The exit offer price will not be revised.

The delisting proposal will require approval from at least 75 per cent of voting shares at a shareholders meeting. It must also not be voted against by at least 10 per cent of voting shares at the shareholders meeting. The offeror can compulsorily acquire all the shares of the company if it receives acceptances worth at least 90 per cent of the shares it does not already control.

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LTC will appoint an independent financial adviser to assess the offer.