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Sinway-led consortium makes offer for CWG International at S$0.195 each
ELIDOM Investment, jointly owned by Sinway Investment, H&H Wealth and Floriland Co, plans to make a voluntary conditional cash offer for the shares that it does not already own in real estate group CWG International at S$0.195 each.
The consortium members already own 81.1 of the target company, and have said that they will provide irrevocable undertakings in favour of the offeror and tender all their shares in acceptance of the offer.
When this happens, the minimum acceptance condition will be met and the offer will be declared unconditional in all respects.
The offeror said that its offer gives shareholders an opportunity to realise their investment in the shares at a 29.1 per cent premium over the volume-weighted average price for the one-month leading up to Dec 28, 2017.
The low trading volume would make it difficult for them to realise their investment otherwise.
It also plans to delist the target company so that it can have greater control and management flexibility in utilising the resources of the company and facilitating the implementation of any strategic initiatives and operational changes, it said.
"If the company is delisted, the company will be able to dispense with compliance costs associated with maintenance of a listed status and other regulatory requirements and human resources that have to be committed for such compliance and channel such expenses towards its business operations. In addition, the company has not carried out any exercise to raise cash funding on the (Singapore Exchange) since 2014," it said.