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Smart Entertainment makes partial offer for Sevak

IT solutions company Sevak, which is on the Singapore Exchange's watch-list, announced on Thursday a proposed partial offer that, if concluded, will result in the offeror and its concert parties holding 51 per cent of the company.

SAC Capital, for and on behalf of the offeror Smart Entertainment, is making a voluntary conditional cash partial offer for some 1.48 million shares in the company, representing a 12.51 per cent stake in the firm.

The partial offer will be extended to all shareholders at an offer price of S$4 per share. This represents a premium of 25 per cent to the closing price of S$3.20 per share on the last trading day of March 20, 2019. Details of the closing date will be announced in due course.

The offer is conditional on the offeror receiving approval of more than 50 per cent from the offer shareholders, with the offeror, concert parties and associates abstaining from voting. It is also conditional on the offeror receiving valid acceptances of no less than the 1.48 million shares.

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The offeror does not currently own any shares, but with its concert parties, it owns an aggregate of 4.56 million shares or a 38.49 per cent stake. The acquisition of the offer shares would thus take its stake up to 51 per cent.

The offeror and concert parties aim to gain majority shareholding so as to acquire statutory control of Sevak, allowing them "to better control or influence the business or the future plans of the company".

"The partial offer represents an opportunity for shareholders to realise part of their investmentĀ in the company, while continuing to participate in the future performance of the company," said Sevak in its announcement. It added that the offeror intends for the company to "carry on and grow its existing operations and businesses" and hasĀ no intention to introduce any major changes, redeploy fixed assets or discontinue the employment of the employees.