Otto Marine's chairman seeks firm's delisting

Singapore

OTTO Marine's executive chairman and controlling shareholder Yaw Chee Siew has proposed a voluntary delisting for the offshore and marine player amid a protracted industry downturn.

Ocean International Capital (OIC), the vehicle through which Mr Yaw is undertaking the delisting, will be making a cash exit offer of S$0.32 per share, representing a 39.13 per cent premium to the last transacted price of S$0.23 on June 1 prior to a trading halt. Mr Yaw, the sole director of OIC, has a total interest of 61.2 per cent in Otto.

A joint announcement by OIC and Otto on Wednesday said the proposed delisting is subject to a pre-condition to get specified approvals and waivers from note-holders.

Wholly owned subsidiary Otto Marine Services has issued S$70 million Series 002 7% notes which have an Aug 1 maturity date. Mr Yaw, who has an interest of S$2 million in these notes, will procure an undertaking from OIC to redeem these notes subject to the successful completion of the delisting. A note-holders' meeting will be convened to secure their consent to extend the maturity date for six months or until the completion of the delisting, and for waiver of compliance with certain covenants…