SINGAPORE - Two of PS Group's directors have made a voluntary conditional cash offer of $0.118 a share for the Catalist-listed fastener supplier to take it private, the company said in a bourse filing on Tuesday (Aug 20).
The offer price values the company at about $8 million, and is almost three times the stock's last transacted price of $0.040 on Aug 6, when PS Group shares last changed hands. PS Group had called for a trading halt on Tuesday morning before the start of trading.
PS Group, in an earnings document released on Aug 7, reported a net asset value per share of 16.02 cents for its half year ended June 30. Its issued and fully paid up share capital comprises 68 million shares.
Executive chairman Teo Choon Hock and managing director Kwek Keng Seng have formed a holding company, PS Investment, for the offer. Mr Teo owns 68.5 per cent of PS Investment and Mr Kwek owns 31.5 per cent.
Mr Teo holds 38.5 per cent of PS Group shares, while Mr Kwek owns 31.5 per cent. Both have undertaken to accept the offer for the shares they own.
The offer document cited low trading liquidity of shares, a premium offer price, greater management flexibility and cost of maintaining its listing as rationale for the offer.
The duo's offer is conditional upon receiving not less than 90 per cent of the total number of shares as at the close of the offer. This excludes the shares already held by both parties and any related corporations or their respective nominees.
SooChow CSSD Capital Markets (Asia) is the financial adviser to PS Investment regarding the deal.
An offer document will be despatched to PS Group shareholders in the next two to three weeks.
PS Group was founded on April 30, 2013, and listed on the Singapore Exchange's Catalist board on July 11, 2013.