SINGAPORE - Aztech Group's co-founder, chairman and CEO, Michaeal Mun Hong Yew, announced on Tuesday (Sept 20) his offer to take the diversified electronics, marine and food company private at 42 Singapore cents a share.
Mr Mun's special purpose vehicle, AVS Investments Pte Ltd, will make an exit offer in cash, to acquire all the company's issued ordinary shares, other than those already owned, controlled or agreed to be acquired by the offeror, AVS and Aztech said in a joint statement to the Singapore Exchange.
AVS also proposes to delist the mainboard-listed company upon holding more than 50 per cent of the company's shares.
As at Tuesday, Mr Mun and parties acting in concert own or control 12.46 million Aztech shares, amounting to a 25.6 per cent share of the company. The parties consist of Mr Mun's son, brother and a company controlled by him.
AVS said it does not intend to revise the exit offer price.
The 42 cents per share offer stands at a 29.2 per cent premium to the stock's last transacted price of 32.5 cents on Sept 16.
The offer price is also 38.3 per cent higher than the stock's volume weighted average price of 30.4 cents for the one month up to Sept 16.
Aztech shares, which were suspended on Monday prior to this announcement, jumped on resuming trade on Tuesday, and were up 9 cents, or 27.7 per cent, at 41.5 cents as of 10:42 am. The counter, which has been very thinly traded, saw 708,000 shares changing hands.
On why shareholders should accept the offer, the statement said they can realise their investments with an upfront premium.
For the offeror, delisting would provide the management of the company with greater flexibility to manage and develop the existing businesses of the group while exploring opportunities without the attendant cost, regulatory restrictions and compliance issues associated with its listed status on the SGX.
It also cited the absence of any present need for access to Singapore capital market, noting that the company has not carried out any exercise to raise cash funding on the SGX in the past five years and does not anticipate needing to do so in the foreseeable future.
Shareholders are to note that if the delisting proposal conditions are not fulfilled, the delisting will not proceed and the company will remain listed on the SGX, said the filing. The exit offer will also lapse and all acceptances of the offer will be returned.
An exit letter detailing the offer will be sent to shareholders.