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Mandatory offer made for Chew's Group shares; directors must all leave once it closes
A MANDATORY unconditional cash offer has been made for shares in Catalist-listed egg farmer Chew's Group, after members of the Chew family completed the sale of their 68.14 per cent stake.
The buyer, Goldhill Trust, is now offering a final price of S$0.2107 in cash for each remaining share in the company, according to an announcement issued on Monday, after its sale and purchase agreement with the Chews' Fenghe Investment Holding went through.
Under the terms of the sale and purchase agreement, all six company directors will have to resign upon the close of the offer. Executive chairman Chew Chee Bin will get payment in lieu of six months' notice, as well as a pro-rated annual wage supplement.
The offeror does not intend to revise the offer price, said Hong Leong Finance. It is acting for Goldhill Trust, which is owned by businessmen Alex Tan Pei Hong and Amos Tan Theng Hong.
The offeror, which intends to keep Chew's listed, plans to carry out a review of the group's business, and has not ruled out a business diversification with shareholders' approval.
The offer document will be sent out between 14 and 21 days from the announcement date - that is, between Oct 22 and Oct 29. The board has appointed Novus Corporate Finance as the independent financial adviser to the independent directors for the deal.
Chew's closed flat at S$0.215 on Monday.