Mr Koh Wee Meng, the founder, government chairman and chief government of property developer Fragrance Group, is providing to take the corporate non-public.
Mr Koh, by means of JK Global Treasures, intends to make a voluntary conditional money supply for all of the issued and paid-up bizarre shares of the group at 13.8 cents a share, Fragrance introduced yesterday.
The shares of the Catalist-listed group final closed on Thursday at 11.8 cents, with a market capitalisation of $793 million.
JK Global Treasures and events performing in live performance with it presently maintain 5.76 billion shares in Fragrance, representing an 85.8 per cent stake within the firm.
Mr Koh, who’s JK Global Treasures’ sole shareholder and director, presently owns 74.7 per cent of Fragrance shares, whereas his spouse Lim Wan Looi, an government director of Fragrance, owns a 10.9 per cent stake within the firm.
They have supplied an irrevocable enterprise to tender all of their respective shares in acceptance of the supply.
The supply value exceeds Fragrance’s final traded value on Thursday on the Singapore Exchange (SGX), representing a 16.9 per cent premium.
It additionally represents premiums of 19 per cent over the one-month and three-month volume-weighted common costs per share; 20 per cent for the six-month interval; and 21.1 per cent for the 12-month interval.
DBS Bank, performing as monetary adviser to JK Global Treasures, famous in a bourse submitting that the supply was an “alternative for shareholders to realise their funding at a premium with out incurring brokerage charges”.
“(The supply) represents a distinctive money exit alternative for shareholders to liquidate and realise their whole funding at a premium to the prevailing market costs and freed from brokerage prices, being an choice which can not in any other case be available due to the low buying and selling liquidity of Fragrance shares.”
The firm had a median day by day buying and selling quantity of 0.002 per cent for the one-month, three-month, six-month and 12-month intervals.
The offeror, with an intention to privatise the corporate, expects that Fragrance won’t want entry to the Singapore fairness capital markets to finance its operations within the foreseeable future, so it “doesn’t imagine it’s mandatory for the corporate to keep a itemizing on the SGX”, DBS stated.
As Mr Koh, who holds greater than 50 per cent of Fragrance’s shares, has undertaken to settle for the supply, no different normal supply can be able to turning unconditional or succeeding, the financial institution stated.
It added that JK Global Treasures believes that privatising the corporate will “present the offeror with extra flexibility to handle the enterprise of the corporate and its subsidiaries, optimise the usage of its administration and assets and facilitate the implementation of any operational change”.
THE BUSINESS TIMES