SINGAPORE - Crane-supplier Tat Hong Holdings said on Friday (Nov 10) that it has received a non-binding letter from Standard Chartered Private Equity Singapore (SCPE) confirming its proposal to acquire shares of the firm at 50 Singapore cents apiece.

Bloomberg had earlier reported that SCPE may be looking to acquire a 29 per cent stake in Tat Hong, citing people familiar with the matter. If that figure is accurate, SCPE could invest between S$109 million and S$154 million into Tat Hong, based on Tat Hong's issued share capital as of June 30. The difference in the range comes from whether SCPE buys the shares from an existing shareholder, or whether Tat Hong issues new shares to SCPE.

The proposed offer price is 4 Singapore cents higher than Tat Hong's closing price of 46 Singapore cents on Thursday. The company had requested for a trading halt on Friday morning pending the release of the announcement.

The mainboard-listed firm previously announced in September and October this year that it had been "approached by certain parties in connection with a potential transaction in relation to the securities of the company".

The deal is subjected to various conditions, including obtaining all necessary confirmations from the Securities Industry Council, agreement of definitive partnership terms, and final approval by the investment committee of SCPE of such terms, the group said on Friday.

The firm added that the letter from SCPE does not constitute a firm intention to make an offer by SCPE for any shares in the company and should not be construed as creating any legally binding obligations.