SINGAPORE (THE BUSINESS TIMES) – Mr Koh Wee Meng, the founder, government chairman and chief government of property developer Fragrance Group, is providing to take the corporate personal.
Mr Koh, by way of JK Global Treasures, intends to make a voluntary conditional money supply for all of the issued and paid-up unusual shares of the group at 13.8 cents per share, Fragrance introduced on Friday (July 9).
Catalist-listed Fragrance shares final closed on Thursday at 11.8 cents, with a market capitalisation of $793 million.
JK Global Treasures and events appearing in live performance with it at the moment 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, at the moment owns 74.7 per cent of Fragrance shares, whereas his spouse Lim Wan Looi, an government director of Fragrance, owns a ten.9 per cent stake within the firm. They have supplied an irrevocable endeavor to tender all of their respective shares in acceptance of the supply.
The supply value of 13.8 cents a share exceeds Fragrance’s final traded value on July 8 on the Singapore Exchange (SGX) of 11.8 cents, 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 value per share, 20 per cent (six-month) and 21.1 per cent (12-month).
DBS Bank, appearing because the 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 singular money exit alternative for shareholders to liquidate and realise their complete funding at a premium to the prevailing market costs and freed from brokerage prices, being an possibility which can not in any other case be available due to the low buying and selling liquidity of Fragrance shares,” DBS stated.
The firm had a mean each 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, therefore it “doesn’t consider it’s essential for the corporate to preserve a list on the SGX”.
As Mr Koh, who holds greater than 50 per cent of Fragrance’s shares, has undertaken to settle for the supply, no different basic supply will probably be able to turning unconditional or succeeding, DBS 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 using its administration and assets and facilitate the implementation of any operational change”.
https://www.straitstimes.com/enterprise/companies-markets/tycoon-koh-wee-meng-offers-to-privatise-fragrance-group-at-138-cents-per
