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Offer for PS Group Holdings fair and reasonable: IFA

THE independent financial adviser (IFA) of PS Group Holdings has deemed the offer by two of PS Group's directors to take it private as fair and reasonable.

The company's independent directors have agreed with the recommendations of the IFA, Hong Leong Finance, and recommended that shareholders accept the offer.

In coming to this conclusion, they noted that the offer price is at a premium of 195 per cent and 266.7 per cent over the last transacted share price on the last trading day as well as the one-month volume-weighted average price (VWAP) prior to the offer respectively. In addition, the offer price is at a premium of 267.5 per cent over the three-month VWAP and six-month VWAP prior to the offer, and a premium of 59.7 per cent over the 12-month VWAP.

In determining that the offer was reasonable, they considered - among other things - the volatile financial performance of the group.

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PS Group's two directors have made a voluntary conditional cash offer of S$0.118 per share to take the Catalist-listed fastener supplier private. Executive chairman Teo Choon Hock and executive director Kwek Keng Seng made the offer via PS Investment.

The offer document cited low trading liquidity of shares, a premium offer price, greater management flexibility and cost of maintaining its listing as reasons for the offer.

The offer was declared unconditional on Sept 17, as the total number of shares owned, controlled or agreed to be acquired by the offeror and its concert parties, and valid acceptances of the offer, amounted to about 90.59 per cent of the total number of shares. 

The offeror plans to delist the company from the Singapore Exchange. 

The final closing date for the offer is 5.30pm on Oct 22.