Keong Hong shareholder LJHB raises stake; triggers general offer for all shares at S$0.384 apiece

LJHB Holdings has raised its stake in property developer Keong Hong Holdings 5TT : 5TT 0%from 26.7 per cent to 45.8 per cent, triggering a mandatory conditional cash offer for all the shares it does not already own at S$0.384 per share.

This comes after LJHB entered into a sale and purchase agreement with Keong Hong chairman and chief executive officer Ronald Leo for 44.8 million shares or 19.1 per cent of the company on Friday (Jan 21), Keong Hong said in a bourse filing.

LJHB's ultimate shareholder is Liu Haiyan and its board comprises Liu, Lin Jinru, and Chen Bin.

Once the acquisition is completed, Leo will own 11.8 per cent of Keong Hong. He has given an irrevocable undertaking to not sell his remaining stake in Keong Hong.

LJHB is obligated to make an offer for Keong Hong as its enlarged stake crosses the 30 per cent threshold.

The offeror intends to maintain Keong Hong's listing status, but also said it "reserves the right to re-evaluate its position, including its right of compulsory acquisition" in the event Keong Hong does not meet the free float requirement.

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The offer is conditional on LJHB and its concert parties receiving valid acceptances of more than 50 per cent of the total number of shares at the close of the offer.

The offer price represents a premium of 3.8 per cent on the last traded price of S$0.37 on Jan 20 - the last trading day before the announcement, Keong Hong said. The company had called for a trading halt before it made the bourse filing on Friday morning.

The price is, however, significantly below Keong Hong's net asset value per share of S$0.678 as at Sep 30.

LJHB had acquired 21 per cent of Keong Hong's issued share capital on Dec 15, 2021 from Leo.

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