SBI Offshore proposes to liquidate to make cash exit offer

SBI Offshore has proposed to undertake its cash exit offer by way of liquidating the company, before delisting from the Singapore Exchange (SGX).

The Catalist-listed firm has written to the bourse operator about its intentions to do so, SBI said in an exchange filing late Tuesday night, adding that it is in the process of appointing the liquidators.

Subject to the view of the liquidator, SBI plans to undertake a two-stage distribution of all its assets to its shareholders. The assets include all monies placed in escrow after discharging all of the company's liabilities.

SBI Offshore will convene an extraordinary general meeting (EGM) to seek shareholder approval for these proposals, among other things.

The EGM may be held around Dec 24, while the date of delisting is to be determined, according to the company's indicative timeline provided on Tuesday.

The actual liquidation process will likely start in early January next year, while the first interim distribution to shareholders is expected to be paid out between end-April 2021 and mid-May 2021.

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The expected final distribution to shareholders, along with the dissolution of the company, will then take place around mid-August 2021 to late November 2021, based on the indicative timeline.

SGX had sent SBI a notification of delisting last month requiring the company to make a cash exit offer after SBI failed to complete the proposed acquisition of the Berlitz group by the deadline.

As at June 30, 2020, the SBI group had net assets of about US$12.3 million, according to its unaudited financial statements for the first half of this year.

Its net asset value per share stood at 4.93 US cents on the group level and 4.91 cents on the company level.

Trading in SBI Offshore shares will continue until Sept 30 at 5pm, to provide an opportunity for shareholders to exit their investment should they decide to do so, the company said.

Trading will then be suspended with effect from Oct 1.

The stock last traded at 3.2 Singapore cents on Monday.