Tee Land's offeror plans to restore free float

Singapore

THE proportion of shares of mainboard-listed Tee Land in the hands of the public has fallen below a key threshold following a cash offer.

This means the Singapore Exchange may suspend trading of the developer's shares at the close of the offer on March 20.

As of Tuesday, the percentage of shares owned, controlled or agreed to be acquired by offeror Amcorp Group stood at 91.06 per cent - exceeding the minimum in public's hand to qualify as a free float.

Amcorp plans to restore the free-float status, so as to lift the trading suspension and keep Tee Land listed. This is by undertaking or supporting any action that ensures at least 10 per cent of the total number of shares - excluding treasury shares - are held by at least 500 shareholders who are members of the public.

However, there is no assurance that timely and appropriate actions can be taken as these are dependent on prevailing market conditions at the relevant time, Tee Land said in a regulatory update.

In a separate announcement, the company said it will hold an extraordinary general meeting on April 9 for its shareholders to vote on the proposed disposal of Tee Industrial to Tee International and Tee Land's proposed name change to Amcorp Global Limited.

Tee Land had earlier entered into a sale and purchase agreement to dispose of its stake in Tee Industrial to Tee International for a nominal amount of S$1.

Tee Industrial owns a six-storey industrial property called Tee Building, which has a market value of S$21.5 million as at Nov 30. However, Tee Industrial has an outstanding mortgage of about S$15.8 million and outstanding payables of about S$9.2 million owing to Tee Land, and was in a negative net asset position of about S$0.9 million as at end-November 2019.

Tee Land shares closed at 17.9 Singapore cents on Wednesday, up 0.1 cent or 0.6 per cent.