Rotary shares jump 8.5% on offer by Chia family, Oman Investment Fund to take it private

SINGAPORE - Rotary Engineering's controlling shareholder, the Chia family group, together with an investment arm of the Oman government, has made an offer to take the mainboard-listed company private through a 46 Singapore cents per share cash offer.

The takeover vehicle is Orochem, which is 64.7 per cent owned by members of the Chia family group and 35.3 per cent held by Oman Investment Fund. Orochem now holds 60.63 per cent of Rotary shares and has given irrevocable undertakings to accept the offer, Rotary announced in a pre-market filing on Monday (Oct 2).

The exit offer price represents a premium of approximately 21 per cent over the stock's last full-day traded price of 38 cents per share and premium of 25 per cent over the volume weighted average price of 36.8 cents for the three months leading up to the stock's trading halt on Sept 29.

Rotary said Orochem does not intend to revise the offer price under any circumstances. Its shares jumped 8.5 per cent to 44.5 cents after trading opened on Monday and was at that price at 2pm. 

The Chia family group includes Rotary chairman Roger Chia, his brother and executive director Chia Kim Chua, and his spouse and non-executive director Jenny Wong. The Chia family group, together with investment vehicle REL Investments, owns about 39.25 per cent of Rotary's shares.

Oman Investment Fund, which is part of the investment arm of the Omani Ministry of Finance, holds another 21.38 per cent of Rotary shares.

Rotary said the offer will close at least 14 days after the offer documents have been dispatched.