Platinum Equity Advisors makes S$1.33 per share cash offer for PCI

AMERICAN private equity firm Platinum Equity Advisors has offered to acquire all the shares of mainboard-listed PCI by way of a scheme of arrangement, at a cash offer of S$1.33 per share.

The price represents a premium of 60.1 per cent over the volume-weighted average price of PCI shares for the 12-month period up to and including Sept 17, 2018, that being the last full trading day preceding the date the company gave notice of a possible transaction.

PCI is a subsidiary of Chuan Hup Holdings, which owns a 76.7 per cent stake in PCI.

Chuan Hup has given irrevocable undertakings to the offeror to vote in favour of the scheme at a scheme meeting to be held in due course. Chuan Hup has also agreed to reject any competing offers.

PCI chief executive Teo Eng Lin and other key executives have also agreed to remain in the employment of the offeror group for a period of no less than two years.

Platinum Equity Advisors said the acquisition represents an opportunity for it to invest in a differentiated electronic manufacturing services company that has been successful in servicing an attractive, growing portfolio of customers across industrial, automotive logistics, commercial, consumer and lifestyle, and medical end-markets.

Platinum Equity Advisors said it presently has no intention to introduce any major changes to the business of PCI. It plans to delist the company from the Singapore Exchange.

DBS Bank is the financial adviser to the offeror.

Chuan Hup and PCI have requested for their trading halt to be lifted from Monday. Chuan Hup shares last changed hands at S$0.295. PCI shares last traded at S$1.13.