Sevak's controlling shareholder intends to make partial offer for shares of the firm

SEVAK Limited's controlling shareholder Smart Co Holding said on Friday it intends to make a partial offer for the shares of the company directly or through its concert parties, which will result in Smart Co Holding and its concert parties holding about 51 per cent of the shares of Sevak.

Sevak said in a Singapore Exchange (SGX) filing that it was notified by Smart Co Holding of its intention on Friday after the close of trading.

It added that Smart Co Holding emphasised there is no assurance any transaction will eventually materialise, and no definitive or binding agreements have been reached in relation to the possible transaction.

The announcement came a day after the Singapore Exchange Regulation (SGX RegCo) urged investors and potential investors to exercise caution when trading in the shares of the company.

It noted that despite a general decline in the broader market, Sevak's share price had climbed steadily from S$2.51 on Sept 17, 2018 to S$4.05 on Oct 19, 2018, representing a meteoric rise of S$1.54 or 61 per cent.

Of particular suspicion is that between Oct 4, 2018 and Oct 16, 2018, despite the Straits Times Index falling by 233.09 points or 7.13 per cent, Sevak's share price rose from S$3.30 to S$3.80, an increase of S$0.50 or 15 per cent.

Since Sept 17, 2018, Sevak's market capitalisation has increased by about S$14.8 million to reach S$44.4 million on Jan 25. On Jan 24, Sevak said that it had submitted an application to exit the watch-list.

SGX RegCo said that it is reviewing the trades in Sevak shares and will "take the necessary actions".

Sevak's counter shed 28 Singapore cents or 7.43 per cent to close at S$3.49 on Friday.