Mandatory unconditional cash offer launched for Cityneon Holdings
CITYNEON Holdings executive chairman Ron Tan, together with Hong Kong entrepreneur and investor Johnson Ko Chun Shun, is looking to delist and take Cityneon private.
West Knighton Limited, a special purpose vehicle indirectly owned by Mr Ko and Mr Tan, purchased an approximately 68.95 per cent stake in Cityneon Holdings from Lucrum 1 Investment Limited at S$1.30 per share for S$219.3 million.
As a result of the acquisition, West Knighton is required to launch a mandatory unconditional cash offer for the rest of the shares.
According to a filing to the Singapore Exchange, the offer price is final and unconditional - shareholders who accept the offer will receive payment of the offer price within seven business days of the date of receipt of their valid acceptances by the offeror.
The offer price is at a premium to the highest ever closing price of the company to-date, with a premium of approximately 19.2 per cent over the volume-weighted average price of the shares for the 12-month period respectively up to the last trading date.
According to a statement, the offeror is of the view that the delisting and privatisation of the company will provide the offeror and the company greater control and management flexibility in the implementation of strategic initiatives and operational changes of the group, as well as dispense with compliance costs associated with the maintenance of its listed status.
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