Sin Ghee Huat privatisation offer turns unconditional

Uma Devi
Published Fri, May 21, 2021 · 05:50 AM

AN offer made by investment holding company HHH Co to take Sin Ghee Huat Corporation has turned unconditional, with the total shares owned, controlled or agreed to be acquired by the offeror and its concert parties constituting some 72.04 per cent of total shares as at 9pm on May 20, the company announced in a bourse filing late Thursday evening.

DBS, acting as the financial adviser to the HHH Co, said the offeror has received valid acceptances in respect of some 115.2 million shares, representing approximately 51.88 per cent of the total number of issued shares.

The offer was declared unconditional in all respects on Thursday, as the offeror and its concert parties now hold more than 50 per cent of the total number of shares in issue.

The company has also extended the date of the close of the offer from 5.30pm on June 14 to the same time on June 28.

In April, HHH Co announced its intention to make a voluntary conditional cash offer for all the issued and paid-up ordinary shares of Sin Ghee Huat for a price tag of S$0.27 apiece. This would value the company at about S$60 million.

In the event HHH Co received sufficient valid acceptances, it had sounded its intention to exercise its rights of compulsory acquisition and subsequently delist Sin Ghee Huat from the Singapore Exchange Securities Trading (SGX-ST).

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The offer price of S$0.27 exceeded the highest closing price of the shares in over two years preceding April 20; representing a premium of 58.8 per cent, 59.8 per cent and 48.4 per cent over the volume-weighted average price (VWAP) per share for both the one-month and three-month period, as well and six-month and 12-months period respectively.

Prior to the offer, HHH Co - which is owned by Low Chui Heng and Low Ah Hoo - held some 44.76 million shares, or a 20.16 per cent stake, in Sin Ghee Huat.

Meanwhile, Mr Low Chui Heng and Mr Low Ah Hoo, being concert parties of HHH Co, along with 2GS Investment and certain existing shareholders, had also provided undertakings to HHH Co to tender all their respective shares in acceptance of the offer. In total, they held about 47.33 per cent of the overall issued shares.

Shares in Sin Ghee Huat ended Thursday flat at 26.5 Singapore cents.

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