SK Jewellery's privatisation offer hits 90% threshold in irrevocable undertakings

Published Tue, Sep 8, 2020 · 01:43 PM

THE voluntary conditional cash offer for SK Jewellery Group's issued and paid-up ordinary shares has received irrevocable undertakings to accept the offer from shareholders representing more than 90 per cent of the company's shares, the offeror OroGreen Investment said on Tuesday.

OroGreen had received additional irrevocable undertakings from 28 parties as at Sept 8, amounting to about 43.3 million shares. Together with the initial irrevocable undertakings received from the management shareholders and Soo Kee Capital, the total undertakings represent an aggregate of 508 million shares or 90.32 per cent of the total number of issued shares.

When the valid acceptances are received, the minimum acceptance condition will be satisfied and the offer will be declared unconditional in all respects. OroGreen intends to then exercise its right to compulsorily acquire all the offer shares not acquired under the offer.

OroGreen is offering S$0.15 per share for all the issued and paid-up ordinary shares in the company to take it private. It said privatisation will provide the offeror and company with greater control and management flexibility to manage the group's business, respond to changing market conditions and optimise the use of the company's management and resources.

Delisting will also enable it to save on expenses and costs related to maintaining its listing status, so it can channel such resources to business operations.

SK Jewellery shares closed at S$0.149 on Tuesday, up 0.1 Singapore cent or 0.68 per cent.