Singapore

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.

Penguin, which builds and operates aluminium high-speed craft, joins a slate of other companies announcing buyout offers in recent months.

GL and CEI, for instance, announced offers just last week.

Hi-P International and Sunningdale Tech announced offers in December and November, respectively.

The takeover price for Penguin International 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 also represents a premium of 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.

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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 remaining 40 per cent is beneficially owned by Dymon Asia Private Equity (SE Asia) Fund II, a fund managed by Singapore-based Dymon Asia Private Equity (Singapore) with US$450 million in commitments.

Mr Hing and Mr Tham collectively own 21.56 per cent of Penguin and have undertaken to accept the offer.

The offer is conditional upon the offeror and its concert parties receiving enough acceptances to take their collective stake past the 50 per cent mark.

If the offeror acquires control of more than 90 per cent of Penguin, it intends to delist the stock from the Singapore Exchange's mainboard.

The offeror said this is an opportunity for shareholders who find it difficult to exit their investment in the company as a result of low trading volume.

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 financial adviser for the offeror is W Capital Markets.

The company on Thursday evening lifted its trading halt called on Wednesday morning.

Its counter last traded at S$0.63 on Tuesday.

After announcing the possible transaction on Dec 21, Penguin saw its stock surge as high as 19 per cent to 59.5 Singapore cents before closing at 57.5 cents for the day.