Low Keng Huat controlling shareholders launch delisting offer at 72 cents a share
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Shares of LKH closed 16.3 per cent, or 10 cents, higher at 71.5 cents on Dec 1, in response to the offer.
PHOTO: BT FILE
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SINGAPORE - The majority shareholders of Low Keng Huat (Singapore) (LKH) have launched a voluntary conditional general offer to take the mainboard-listed construction and property developer private at 72 cents per share. The offer is being made through a special purpose vehicle, Consistent Record, which is effectively controlled by managing director Marco Low Peng Kiat and his family.
The cash offer price of 72 cents per share represents a premium of 17.1 per cent over the last transacted price of 61.5 cents on Nov 28, the last full trading day prior to the announcement.
It also represents a premium of 45.2 per cent over the volume-weighted average price for the 24-month period up to the last trading date, the release read.
Shares of LKH closed 16.3 per cent, or 10 cents, higher at 71.5 cents on Dec 1, in response to the offer.
The offer is conditional upon Mr Low receiving acceptances that would result in it holding not less than 90 per cent of the total voting rights, excluding shares already held by the offeror and its concert parties.
As at the announcement date, Mr Low has a deemed interest of about 54.13 per cent of the company’s total shares.
The offer announcement said the company has no need for access to equity capital markets. LKH has not raised any funds from the Singapore equity capital markets since a rights issue in 2007.
“The offeror is of the view that the company is unlikely to require access to the Singapore equity capital markets in the foreseeable future,” the announcement read, noting that funding needs can be met through bank borrowings and debt financing.
Mr Low intends to delist the company to save on compliance costs and gain greater flexibility to manage the business amid a “challenging macro and operating environment”.
Listed in 1992, the company’s main activities comprise construction, property development, and ownership and operation of serviced apartments, a hotel and a restaurant.
The formal offer document will be dispatched to shareholders between 14 and 21 days from the announcement date of Nov 28. THE BUSINESS TIMES
