Nordic Group looking to make offer for Starburst Holdings at S$0.238 per share

MAINBOARD-LISTED Nordic Group (NGL) intends to make a voluntary conditional offer for engineering group Starburst Holdings at S$0.238 per share in cash.

In a filing to the Singapore Exchange, it said that its wholly-owned unit Nordic Flow Control plans to make the offer for all the shares in Starburst that it does not own.

The offer will only be made if a pre-condition has been satisfied or waived on or before Feb 10, 2022 - namely that all resolutions necessary to approve and undertake the offer are passed at NGL's general meeting.

If and when the pre-condition is satisfied or waived, Nordic Flow will announce its firm intention to make the offer; if it is not satisfied or waived on or before the long-stop date, the offer will not be made.

At this point, Nordic Flow has received irrevocable undertakings from Starburst's chairman Edward Lim Chin Wah, as well as its managing and executive director Yap Tin Foo, to accept the offer. Together, the duo hold 173.03 million shares worth 69.7 per cent in Catalist-listed Starburst.

The offer price represents a premium of 5.78 per cent over the last transacted price of the shares on the Singapore Exchange on Nov 9, which is the last trading day before the announcement. It is also a premium of 4.16 per cent, 9.07 per cent, 12.53 per cent and 25.46 per cent over the volume weighted average price (VWAP) per share for the 1-month, 3-month, 6-month and 12-month periods up to and including Nov 9.

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NGL said: "The Nordic group believes that the business and operations of the Starburst group are a strategic fit and will provide synergistic benefits."

NGL and its subsidiaries provide solutions in areas such as automation and systems integration; maintenance, repair, overhaul and trading as well as precision engineering.

NGL added that it will consider delisting the company from SGX should it garner the necessary acceptances.

Shares in both NGL and Starburst were halted from trading on Nov 10.