Mandatory unconditional cash offer made for Raffles United Holdings

RAFFLES Infinity Holdings is making an unconditional cash offer of S$0.065 per share for the shares that it doesn't already own in Raffles United Holdings.

The offeror's sole shareholder and director is Teo Xian-Hui Amanda Marie, the daughter of Raffles United's managing director Teo Teng Beng.

On July 1, Raffles Infinity acquired about 324.32 million shares representing about 82.08 per cent in Raffles United from Raffles United Pte Ltd (RUPL) and Ms Teo at S$0.055 per share. As a result, Raffles Infinity and the parties acting in concert with it - namely Ms Teo - now have a stake totalling about 86.17 per cent in Raffles United, triggering a mandatory general offer.

Ms Teo holds directly, and in her own name, shares representing 4.09 per cent in the company and she intends to accept the offer to consolidate her holdings of shares.

The offer price represents a premium of 27 per cent and 19 per cent respectively over the last traded price per share on the last trading date of June 27, and the volume-weighted average price for the one-month period prior to and including the last trading date.

Raffles United's business activities include distribution, retailing and application of bearings and seals in South-east Asia and the Far East, property investment and property development.

The company was placed on the Singapore Exchange watch-list under the minimum trading price entry criteria in December 2018.

"Through the offer, accepting shareholders will have an opportunity to realise their investments in the company for a cash consideration at a significant premium above the prevailing market share price, without incurring any brokerage and other trading costs, amid challenging market conditions," said Raffles Infinity, which also pointed to the low trading liquidity of Raffles United's shares.

Raffles Infinity does not intend to preserve the listing status of the company.