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Smart Entertainment’s S$5.9m partial offer for Sevak fails to get shareholders' nod, closing date extended

IT solutions company Sevak, which is on the Singapore Exchange’s watch list, announced on Monday night that it has not received the required votes from shareholders to approve Smart Entertainment’s S$5.9 million partial offer for its shares, and that the closing date for the offer has been extended to May 23, 5.30pm.

If concluded, the partial offer will increase the stake held by Smart Entertainment and its concert parties from 38.49 per cent to 51 per cent of Sevak.

Smart Entertainment on March 21 made a voluntary conditional cash partial offer for some 1.48 million shares in Sevak at S$4 apiece, or about S$5.9 million.

The offer price of S$4 per share represents a premium of 25 per cent to the closing price of S$3.20 per share on March 20, 2019.

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The offer is subject to shareholder approval from more than 50 per cent of the valid votes received. But only 40.95 per cent had approved the partial offer as at 5pm on April 29. As a result, it remains conditional upon shareholder approval, said Smart Entertainment's financial adviser SAC Capital.

It is also subject to Smart Entertainment having received the 1.48 million shares. This condition has been satisfied, as Smart Entertainment had received about 1.5 million shares or a 12.89 per cent interest in Sevak as at 5pm on April 29, SAC Capital said.

Sevak shares were trading at S$3.40 as at 9.43am on Tuesday.

Document 1: Satisfaction of Acceptance Condition, April 29

Document 2: Offer Document, April 11