Hot stock: Roxy-Pacific up as much as 17.3% on pre-conditional privatisation offer

SHARES of Roxy-Pacific Holdings E8Z were up Monday morning after the company said it has received a pre-conditional voluntary general offer from TKL & Family for all the issued ordinary shares in the company, at an offer price of 48.5 Singapore cents per share.

Its shares were trading at a high of 47.5 cents as at 9am on Monday, up seven cents or 17.3 per cent, with 565,000 shares changing hands.

The counter later eased slightly to close at 47 cents, up 6.5 cents or 16.1 per cent.

No married deals were recorded, according to ShareInvestor data.

Shares of the property and hospitality group resumed trading on Monday, after the company called for a trading halt on Sept 15 pending the release of an announcement.

Roxy-Pacific said the privatisation will allow shareholders to realise their investment at an attractive price and compelling premium amid low trading liquidity, as well as exit their investment as the company is facing a challenging macro and operating environment driven by the Covid-19 pandemic.

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The offer price represents a premium of 19.8 per cent over the stock's closing price on Sept 14, the last full trading day for the company prior to the announcement. It also represents a premium of 37 per cent over the 12-month volume-weighted average price up to and including the last trading date.

The price, however, is below Roxy-Pacific's adjusted net asset value (ANAV) per share of 72.87 cents as at June 30. The ANAV accounts for a revaluation surplus of S$463.4 million for some of the company's hotel properties.

TKL & Family is the bid vehicle of a consortium formed by 11 individuals, including the chairman and chief executive of Roxy-Pacific, Teo Hong Lim.

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