Penguin chairman, MD in tie up with Dymon Asia fund to take firm private

PENGUIN International on Thursday said a consortium comprising its executive chairman, managing director and a Dymon Asia fund intends to take the company private at S$0.65 per share.

The offer price represents a premium of 30 per cent over the last transacted price per share of S$0.50 on Dec 18, 2020 - the day Penguin announced a possible transaction involving its shares, it said in a bourse filing.

It also represents a premium of about 35.7 per cent, 42.5 per cent, 44.4 per cent and 17.5 per cent over the volume-weighted average price per share for the one-month, three-month, six-month and 12-month periods, respectively.

Penguin executive chairman Jeffrey Hing owns a 55 per cent stake in the offeror Emet Grace, while managing director James Tham owns 5 per cent.

The owner of the remaining 40 per cent is Fairy LP, a special purpose vehicle linked to Dymon Asia Private Equity (SE Asia) Fund II, a US$450 million fund managed by Singapore-based Dymon Asia Private Equity (Singapore).

Together, Mr Hing and Mr Tham own about 21.56 per cent of the total number of shares in Penguin and have undertaken to accept the offer.

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If the proposed privatisation goes through, Penguin will become a wholly-owned subsidiary of Emet Grace and be delisted from the Singapore Exchange's mainboard.

Penguin, which builds and operates aluminium high-speed craft, said the offer will provide shareholders who find it difficult to exit the company as a result of low trading volume an opportunity to liquidate and realise their investment at a premium to the prevailing market prices.

It will also allow Penguin's management more flexibility to manage its business, optimise the use of its management and capital resources and facilitate the implementation of any operational change.

Moreover, Penguin will be able to save on expenses related to maintaining its listed status and focus its resources on business operations.

The company called for a trading halt on Wednesday morning before the market opened. Its counter last traded at S$0.63 on Tuesday.