Privatisation offer for Sen Yue closes with 97.73% valid acceptances
The privatisation move comes out of Sen Yue’s prolonged trading suspension and regulatory overhang
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[SINGAPORE] The privatisation offer for waste-management company Sen Yue Holdings has closed successfully, with the offeror, Cenvios Holdings, having secured valid acceptances representing 97.73 per cent of the company’s total shares as at Tuesday (Apr 14).
This amounts to about 3.16 billion shares, based on the company’s issued share capital.
The closing date of the offer had been extended from Mar 17 to Apr 14 after acceptances crossed the 90 per cent threshold, allowing the offeror to exercise its right of compulsory acquisition under the Companies Act.
As at Mar 17, Cenvios had received acceptances for about 3.1 billion shares, or roughly 95.5 per cent of Sen Yue’s total shares.
The voluntary unconditional general offer, first announced on Feb 12, was made at S$0.008 per share. Shareholders were given the option to receive either cash or one Cenvios share for each Sen Yue share tendered, also valued at S$0.008.
The Cenvios shares are not listed and will not be traded on any securities exchange.
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Of the total acceptances, about 2.85 billion shares, or 87.98 per cent of Sen Yue’s shares, were tendered by undertaking shareholders under irrevocable commitments.
A further 377,000 shares, or about 0.01 per cent, were tendered by Yap Yao Hui, a concert party of the offeror.
He is the son of Sen Yue’s non-executive chairman, Yap Meng Sing, and a shareholder of the company.
Cenvios Holdings, a newly incorporated private vehicle controlled by the older Yap, was set up specifically to carry out the privatisation. Prior to the offer, the offeror and its concert parties collectively held about 1.76 billion shares, or 54.24 per cent of Sen Yue.
Following the close of the offer, the offeror and its concert parties now control or have agreed to acquire 97.73 per cent of the company.
In an earlier filing, the offeror said the privatisation was driven by Sen Yue’s prolonged trading suspension and regulatory overhang, which have constrained its access to funding and borrowing capacity. This has in turn limited its ability to pursue growth opportunities and meet operational and capital needs.
Trading in Sen Yue shares has been suspended since May 4, 2020, when the company requested a halt to address a letter of demand served on a subsidiary, as well as internal disagreements over receivables amid a board dispute.
The shares last traded at S$0.022 before the suspension.
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