The furnishing and interior design firm Nobel Design Holdings has received an unconditional cash offer to acquire all its shares.
The offer price of 51 cents a share was tabled by Grand Slam RF18 Investments after the market closed yesterday.
Nobel chief executive Terence Goon and former director Patrick Kho are among Grand Slam's owners. Their holdings already give Grand Slam around 41 per cent of the shares.
Grand Slam had also acquired an additional 23 per cent of Nobel's stock from a substantial shareholder - also at 51 cents apiece - giving it control of around 64.3 per cent of the shares.
Grand Slam said the offer for the remaining shares is at a premium of 18.6 per cent over the six-month volume weighted average price of Nobel stock. The offer is final and will not be revised. OCBC is the deal's financial adviser.
"The offer presents an opportunity to Nobel shareholders to realise the value of their investment in cash and to exit a thinly traded counter at attractive premiums," Grand Slam said in a press release.
"Nobel shareholders accepting the offer will also save on brokerage and other trading costs that they may have to incur when they sell in the open market."
The offer closing date will be made known later. If Grand Slam acquires 90 per cent of the shares it does not hold, it will exercise the right to compulsorily acquire all remaining shares and delist Nobel. This would mark another firm being taken off of the stock market, highlighting the scrutiny the Singapore Exchange continues to face on its appeal as a listing venue, following a string of high-profile privatisations like Osim and Super Group.
But SGX chief executive Loh Boon Chye has stressed that the initial public offering pipeline will improve this year.
Coffee shop operator Kimly and entertainment event company UnUsUaL have been among the debutants on the SGX this year.
Nobel shares were at 50 cents yesterday before the company requested a trading halt.