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S$0.215 cash offer for POSH turns unconditional

THE cash offer for mainboard-listed PACC Offshore Services Holdings (POSH) has turned unconditional, following the offeror having received valid acceptances which will result in the offeror holding not less than 90 per cent of the outstanding shares.

Also, the closing date for the offer has been extended from 5.30pm on Dec 18 to 5.30pm on Jan 2, 2020 with no further extension, announced POSH in its filing to the bourse operator on Wednesday.

The filing said the offeror, Quetzal Capital, together with its concert parties, saw their shares owned, controlled or agreed to be acquired by them reach 91.23 per cent of POSH's issued shares as at 5pm on Wednesday.

As the acceptance condition has been satisfied, the offer is declared to be unconditional in all respects, the statement added.

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As the offeror has received valid acceptances of over 90 per cent, it will exercise its right of compulsory acquisition over all shares held by shareholders who have not accepted the offer as at the close of the offer at the offer price of S$0.215 per share.

Provenance Capital, the independent financial adviser, had earlier advised the recommending directors of POSH to recommend that shareholders accept the cash offer because it is "fair and reasonable". The price represents a premium of about 97.2 per cent over the last traded price on Oct 30. It also represents a premium of about 35.3 per cent over the 12-month volume-weighted average price.

Quetzal Capital made a voluntary conditional cash offer on Nov 4 for the loss-making Asia-based international operator of offshore support vessels, with a diversified fleet servicing offshore oil and gas exploration and production activities. It is the bid vehicle formed by certain members of the Kuok group of companies, namely Kuok (Singapore) or KSL, Trendfield Inc, a wholly-owned subsidiary of Kuok Brothers, as well as Merry Voyage, a wholly-owned unit of Kerry Holdings.

POSH shares closed unchanged at S$0.215 on Wednesday before the announcement was made.