Cosco cash offer for Cogent goes unconditional

File photo of a COSCO Prince Rupert container ship in the Kwai Tsing Container Terminals, in Hong Kong.
File photo of a COSCO Prince Rupert container ship in the Kwai Tsing Container Terminals, in Hong Kong.PHOTO: EPA-EFE

SINGAPORE - The S$1.02-a-share cash offer of Chinese shipping company Cosco Shipping International (Singapore) for Cogent Holdings has become unconditional with the offeror having received valid acceptances representing about 92.05 per cent of the total number of shares.

As at 5pm on Jan 2, 2018, Cosco has received valid acceptances representing 92.05 per cent of the total number of Cogent shares, Bank of China announced on behalf of Cosco after Tuesday's trading hours.

With the offer turned unconditional, Cosco will exercise its compulsory acquisition right and proceed to delist Cogent Holdings from the Singapore Exchange.

The offer will close on Jan 19 at 5.30pm.

Cosco had previously received irrevocable undertakings by four Cogent shareholders who collectively hold 84.33 per cent of the total number of Cogent shares.

The four undertaking shareholders are Cogent's executive chairman Tan Yeow Khoon, his wife Ng Poh Choo, managing director Tan Yeow Lam, and executive director and chief executive Benson Tan Min Cheow, with all four agreeing to accept the offer on or before Jan 3, 2018.

Cosco's offer price represents some 3½ times Cogent's net tangible asset per share of 29.8 Singapore cents as at end-June 2017.

Upon Cogent's delisting, Cosco says it intends for Cogent to continue with its existing business activities, and does not intend to introduce any major changes to Cogent's existing businesses, re-deploy any of Cogent's major fixed assets, or discontinue the employment of any Cogent employees, other than in the ordinary course of business.

Cosco's financial adviser for the deal, Bank of China, will extend a S$350 million loan facility to part fund the takeover.