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Trading in Lee Metal shares suspended as BRC Asia takeover offer closes
MAINBOARD-listed steel fabricator Lee Metal Group requested the mandatory suspension of trading in its shares on Thursday, as the takeover bid by BRC Asia pushed public ownership below the required 10 per cent threshold.
Lee Metal has received valid acceptances of some 457 million shares, representing around 96.34 per cent of issued shares, as at the close of the offer at 5.30pm on Thursday.
In addition, BRC Asia and its concert group hold some 5.2 million shares, or 1.09 per cent of the issued shares.
BRC Asia, a steel prefabrication company, announced plans in February to buy its rival for S$$199.3 million with the aim of delisting Lee Metal and tapping potential business synergies from the acquisition.
Singapore's competition watchdog has already given the green light to the voluntary conditional cash offer, which priced Lee Metal shares at S$0.42 apiece and closed at 5.30pm on Thursday.
Lee Metal lost its public float on June 5, the board of directors has previously said.
At that point, BRC Asia owned, controlled or had secured acceptance of its offer from shareholders, with a combined stake amounting to 90.45 per cent of Lee Metal. Listing rules require at least 10 per cent of all shares, except for treasury shares, to be in the hands of the public at all times.
Offeror BRC Asia dipped at Thursday's close by S$0.01, or 0.76 per cent, to S$1.30.
Lee Metal finished its last day of trading higher by half a Singapore cent, or 1.21 per cent, at the offer price of S$0.42.