Offer to delist United Global closes with 99.02% valid acceptances

Michelle Zhu

Published Wed, Jan 26, 2022 · 08:48 AM

THE offer to take United Global private at S$0.45 in cash per share has closed on Tuesday (Jan 25) with valid acceptances representing 99.02 per cent of the company's total issued shares.

As such, offeror DMW Investments will exercise its right of compulsory acquisition and proceed to delist the Catalist-listed lubricant manufacturer.

DMW Investments is an investment vehicle whose owners include 3 company directors - chief executive Tan Thuan Hor who owns a 35 per cent stake, as well as chairman Edy Wiranto and executive director Ety Wiranto with a 5 per cent interest each.

The remaining 55 per cent is held by United Global shareholder Wiranto.

In a bourse filing on Wednesday, United Global said the total valid acceptances include offer shares amounting to a 90.03 per cent stake in the company. These shares were tendered by United Global shareholders who have made irrevocable takings.

The voluntary unconditional cash offer was first made on Dec 10, 2021, when the offer price marked a premium of 12.5 per cent to the company's last transacted price of S$0.40 before the company called for a trading halt on Dec 9.

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DMW Investments said it did not intend to make major changes to United Global's business or management team, or redeploy the fixed assets of the company.

As at the date of the offer, the vehicle and its concert parties had collectively owned or controlled shares amounting to 91.11 per cent of the company's issued shares.

The Singapore Exchange on Jan 21 said it had no objection to the proposed delisting, in view that United Global's free float had fallen below 10 per cent as a result of the offeror and its concert parties' shareholdings of more than 90 per cent in aggregate, and also taking into consideration the intention to delist the company.

Shares of United Global last ended Tuesday flat at S$0.45 before the company called for a suspension of trading in all its shares with immediate effect.