Sim Lian offer turns unconditional
Singapore
THE offer to take Sim Lian Group private has turned unconditional and trading of shares in the construction and property group is headed for suspension after the final closing date on Oct 10.
In a late night announcement on Monday, offeror Coronation 3G said that it had garnered a stake of 90.1 per cent in Sim Lian as at 5pm that day. Coronation 3G is the vehicle through which the Kuik family led by Sim Lian founder and executive chairman Kuik Ah Han has made the privatisation offer.
"The minimum acceptance condition to the offer has been fulfilled and the offer was therefore declared unconditional in all respects," said Coronation 3G.
The Business Times understands that the crossing of the 90 per cent threshold seven days after the despatch of the offer document on Aug 29 came even before the release of the independent financial adviser's report.
On Aug 16, Sim Lian announced that PricewaterhouseCoopers Corporate Finance was appointed the IFA to advise independent directors on the privatisation offer.
Coronation 3G announced its intention to make the voluntary conditional cash offer of S$1.08 per share for all the outstanding shares in Sim Lian that it did not already own or had agreed to acquire on Aug 8.
The offeror intends to exercise its right to compulsorily acquire the shares of shareholders who have not accepted the offer.
As the offer has become unconditional, it will remain open for acceptance until 5.30pm on Oct 10.
Last month, Sim Lian posted a 71 per cent drop in net profit to S$68.8 million for the full year ended June 30, 2016. Revenue for the fiscal year fell 52 per cent to S$570.9 million.
The contribution of Sim Lian's property development division to FY2016 revenue was 91 per cent lower at S$86.6 million, while its construction division contributed S$430 million to revenue for the fiscal year, an 88 per cent jump.
Sim Lian has proposed a first and final dividend of 1.5 Singapore cents, down from the preceding financial year's 7.28 Singapore cents.
On Tuesday, its shares added half a cent to close at S$1.075.
