SINGAPORE - Independent financial adviser Novus Corporate Finance has found the terms of the cash offer for existing shareholders of Cityneon Holdings at $1.30 per share to be "fair and reasonable", in a circular despatched to shareholders.
It advised independent directors to recommend that shareholders accept the offer for the mainboard-listed events and exhibitions company, unless shareholders are able to obtain a price higher than the offer price on the open market.
On Oct 29, Cityneon Holdings executive chairman and group CEO Ron Tan, together with Hong Kong entrepreneur and investor Johnson Ko Chun Shun, launched a mandatory unconditional cash offer for the rest of Cityneon's shares with the purpose of delisting and taking Cityneon private.
This was triggered after its acquisition of an approximately 68.95 per cent stake in Cityneon Holdings from Lucrum 1 Investment, at $1.30 per share for $219.3 million through special purpose vehicle West Knighton, which is indirectly owned by the duo.
Shareholders have until 5.30pm on Dec 12 to accept the offer, which is final and unconditional.
Shareholders who accept the offer will receive payment of the offer price within seven business days of the date of receipt of their valid acceptances by the offerer.
The offer price is at a premium to the highest ever closing price of the company to date, at a premium of about 6.8 per cent, 11.9 per cent, 15.7 per cent and 19.2 per cent over the volume-weighted average price of the shares for the one-month, three-month, six-month and 12-month periods, respectively up to the last trading date.
According to a statement, the offerer is of the view that the delisting and privatisation of the company will provide the offerer and the company with greater control and management flexibility in the implementation of strategic initiatives and operational changes of the group, as well as dispense with compliance costs associated with the maintenance of its listed status.