SINGAPORE - Shares of Osim International jumped as much as 14 per cent to a four-month high of $1.395 within the first hour of trading on Tuesday, after founder Ron Sim said on Monday he wanted to take the firm private.
The stock resumed trading on Tuesday, after a week-long halt that ended with news of Mr Sim's privatisation bid.
Mr Sim, who already owns 68.31 per cent of Osim, is offering investors $1.32 a share in an unconditional deal that will see him shelling out as much as $310 million.
The offer price represents a premium of about 33.5 per cent to the volume-weighted average price over the three months to Feb 29. It also reflects a 7.8 per cent premium over the last traded price on March 1 before the stock was suspended.
Last Tuesday, Osim shares jumped over 10 per cent, to end at $1.225.
Osim said : "The offer provides an opportunity to Osim's minority shareholders to sell their stake at a significant premium over the prevailing share price amidst challenging market conditions."
