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Third party in exploratory talks to acquire controlling interest, JEP Holdings responds to SGX query
AN unrelated third party has been in talks with the executive directors of JEP Holdings in their personal capacities over a possible deal to acquire a controlling interest in the company.
This could be the reason behind the heavy trading in its shares on Monday, the precision machining company said, in response to a trading query from the Singapore Exchange.
The stock stood out as one of the most actively traded counters on Monday, with a volume of 193.8 million shares. It closed 7 per cent or 0.04 Singapore cent higher at 6.1 Singapore cents.
JEP said that the board has received information that the third party, who was not named, has been in talks with executive directors Joe Lau and Zee Hoong Huay over a possible transaction that involves the acquisition of a portion of the existing shares of the company beneficially owned by them.
If the transaction goes through, this could result in the third party acquiring at least 15 per cent - and a controlling interest - of the company.
JEP said that it has been told that the discussions are at an exploratory stage.
Apart from this development, the company said, it is not aware of any other possible explanation for the trading.
It added that it will make further announcements if and when there are any material developments which it is made aware of.