Chip Eng Seng offer turns unconditional; closing date extended to Jan 19
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Chairman Celine Tang and husband Gordon Tang need to attain more than 90 per cent of the company's shares to take it private.
PHOTO: SINGHAIYI
Michelle Zhu
SINGAPORE – Chip Eng Seng chairman Celine Tang and her husband Gordon Tang’s mandatory cash offer to acquire the property player at 75 cents per share has been declared unconditional in all respects.
This comes after the offeror – Tang Dynasty Treasure, the couple’s investment holding firm – received valid acceptances amounting to over 405.7 million shares, or 51.73 per cent of the firm, as at 6pm on Wednesday.
These include acceptances received from the offeror’s concert parties, which amount to some 386.4 million shares, representing a 49.27 per cent interest in the company.
Together with valid acceptances of the offer, the total shares owned, controlled or agreed to be acquired by the offeror and its concert parties represent 410.5 million shares, or 52.34 per cent of the company.
This also represents 50.41 per cent of the maximum potential issued share capital of Chip Eng Seng in the event that all outstanding company options are validly exercised, and all outstanding awards granted under the company’s share plan validly vested.
As a result of the offer turning unconditional, the offer’s closing date has been extended by two weeks to 5.30pm on Jan 19, 2023, from the same time on Jan 5.
The Tangs’ privatisation bid for Chip Eng Seng was first launched as a voluntary conditional cash offer on Nov 24 at 72 cents per share through Tang Dynasty Treasure.
The offer subsequently turned mandatory after the Tangs enlarged their shareholding percentage through a purchase of new shares on Nov 25.
On Dec 2, the offer price was raised by 4.2 per cent to 75 cents per share. This exceeds the share’s highest closing price in the three-year period prior to, and including, the holding announcement date on Sept 7.
To take the company private, the Tangs are required to attain over 90 per cent of Chip Eng Seng’s shares. The couple recently privatised SingHaiyi Group, which was delisted on Jan 31, 2022, at a significant discount to its net asset value.
