Controlling shareholders of LTC eye voluntary delisting

The controlling shareholders of LTC Corp will propose a voluntary delisting and make an exit offer at 92.5 cents per share after failing to force a compulsory delisting from their earlier takeover bid for the steel and property group.

Mountbatten Resources, a vehicle controlled by the family of managing director Cheng Yong Liang, has told the board of LTC that it will propose a voluntary delisting to shareholders, LTC announced yesterday.

As part of the proposal, Mountbatten will make an exit offer that matches the controlling shareholders' bid from their recently concluded takeover offer. Following that takeover bid, the Cheng family and its concert parties currently hold an 88.44 per cent stake in LTC. The exit offer price will not be revised.

The delisting proposal requires approval from at least 75 per cent of voting shares at a shareholders' meeting. It must also not be voted against by at least 10 per cent of voting shares at the shareholders' meeting. The offeror can compulsorily acquire all the company shares if it receives acceptances worth at least 90 per cent of the shares it does not control. LTC will appoint an independent financial adviser to assess the offer.

  • 88.44%

    Stake in LTC that the Cheng family and its concert parties now hold after the takeover bid.

A version of this article appeared in the print edition of The Straits Times on September 08, 2018, with the headline 'Controlling shareholders of LTC eye voluntary delisting'. Print Edition | Subscribe