San Teh offer crosses 90% shareholding threshold; compulsory acquisition next
Ng Ren Jye
Singapore
AN OFFER by the Kao family and concert parties for all shares of property firm San Teh at S$0.28 apiece in cash closed on Thursday, after the offeror acquired 95.38 per cent of the company's shares.
The family - whose members include directors, and the chairman and CEO of San Teh - has crossed the 90 per cent shareholding threshold, triggering a compulsory acquisition.
San Teh on Friday morning requested that its shares be suspended. It had on Nov 1 applied to delist from the Singapore Exchange.
The Kao family had previously extended the voluntary conditional cash offer's closing date from Oct 24 to Nov 7 after managing to garner only 89.83 per cent of San Teh's shares.
When it first announced its offer in Sept, the Kao family noted that San Teh had not carried out any equity raising exercise since 1998, and was unlikely to require public market monies to finance its operations in the foreseeable future.
The offeror said the delisting will "provide it and the company with greater control and management flexibility in utilising and deploying the available resources of the company and facilitating the implementation of any strategic initiatives and/or operational changes".
The counter closed unchanged at S$0.275 on Thursday.
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