Two mainboard-listed property companies, Fragrance Group and Aspial Corporation, have come together in a 50:50 joint venture to make a voluntary conditional cash offer for LCD Global Investments Ltd for up to $313.8 million.
The partners have offered $0.33 per share in cash if LCD cancels or defers a rights issue announced last month by 6 p.m. on Jan. 14, or $0.30 per share in cash if LCD does not make such an announcement, the companies said on Monday.
The controlling shareholders of Fragrance and Aspial and their family members hold a combined 29.3 per cent stake in mainboard-listed LCD.
LCD, formerly called L.C. Development Ltd, has evolved from property development and property management activities to focus on hospitality and investment holdings. Currently, the LCD Group has presence in Asia and the United Kingdom and its portfolio of businesses includes high-end hotels and resorts, serviced residences and real estate consultancy. It is currently developing an integrated lifestyle development in Xuzhou City in China's Jiangsu Province and a luxury resort in Phuket, Thailand.
Aspial started out as a traditional jeweller but now has three core businesses - jewellery retail, property.
Fragrance, known for its Fragrance-brand of hotels said the offer will be funded though a combination of equity injections and external borrowings. Fragrance said it will fund 50 per cent of the equity injections through internal cash resources and provide a corporate guarantee for 50 per cent of the external borrowings involved in the offer.
The audited net asset value of the LCD Group was approximately $332.6 million as at June 30, 2014, while its unaudited NAV was approximately $331.5 million as September 30, 2014.
The company had a market capitalisation of approximately $316.1 million as of Friday (Jan 9), the last trading day prior to the date of this announcement, based on the volume weighted average price (VWAP) of S$0.30 of the LCD shares transacted. Baxed on that VWAP, the market value of the offer shares as of Friday was approximately $224.1 million.
For the financial year ended June 30, 2014, the LCD Group reported a pre-tax loss of $9.1 million based on $55.5 million in revenue. For the three months ended September 30, 2014, the LCD Group reported a pre-tax loss of $2.6 million on revenue of $12.6 million.