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Offer closes for Sunrise Shares Holdings

THE offer for electrical products trader and distributor Sunrise Shares Holdings has closed.

At at 5.30pm on Feb 7, the total number of shares owned, controlled or agreed to be acquired by offeror Hong Kong-based businessman Wong Siu Fai and parties acting in concert with him, as well as valid acceptances to the offer, represented about 59.6 per cent of the total number of issued shares in the company. 

In December, Mr Wong acquired a 90 per cent stake in Quality Able, which holds a 4.49 per cent stake in Sunrise Shares, for S$122,400. Including his direct and deemed stake of 29.73 per cent at the time, this pushed his total stake past the 30 per cent threshold to about 34.2 per cent, triggering the requirement for a general offer for the rest of the company's shares. Mr Wong made an offer of S$0.017 per share.

Settlement of the consideration for the shares which accepted the offer on or before Feb 7 is expected to be made on or before Feb 18. 

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The independent financial advisers (IFA) of Sunrise Shares previously described the offer as "not fair and not reasonable", according to a circular sent to shareholders of the firm. The directors agreed with the advice of the IFA, Novus Corporate Finance, and have recommended that shareholders reject it.

A letter by the IFA noted that trading in the shares had been sporadic in the year leading up to the offer announcement. Due to the lack of trading liquidity of the shares, the closing prices of the shares may not necessarily be a meaningful indicator of the fundamental value, the letter said.

The offer price represents a significant discount of 64.4 per cent to the volume-weighted average price for the one-year period prior to the offer announcement, but represents a premium of about 21.4 per cent over the closing price of the shares of S$0.014 on their last trading day.