Goh family makes cash offer of 14.5 cents a share to take Ossia International private
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The offer represents a premium of 20.8 per cent over Ossia International's last traded price before the announcement.
PHOTO: OSSIA INTERNATIONAL
Zhao Yifan
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SINGAPORE - The Goh family that controls Ossia International on June 12 proposed to privatise the company at 14.5 cents per share in cash through a voluntary unconditional offer.
As at June 12, the Singapore-based distributor and retailer of luxury goods has an issued and paid-up share capital of $31.4 million, with about 252.6 million shares.
The offerors are the group’s executive chairman George Goh Ching Wah, non-executive director Goh Ching Lai and chief executive Goh Ching Huat.
The Goh family said that it is currently their intention to ensure continuity in the operations of the company and its subsidiaries.
They added that the rationale for the privatisation offer is for shareholders to have the opportunity to realise their investment at a premium without incurring brokerage costs.
The offer price of 14.5 cents per share represents a premium of approximately 20.8 per cent over Ossia International’s last traded price of 12 cents per share on June 7, the last full trading day before the offer announcement.
It also represents premiums of about 19.8 per cent, 20.8 per cent, and 16 per cent over the one-month, three-month and six-month volume-weighted average prices, respectively, prior to and including the last trading date.
Other reasons include the low trading liquidity of Ossia International’s shares, with average daily trading volumes at 16,200 shares one month before the offer announcement, representing a mere 0.006 per cent of the company’s total issued shares.
Additionally, the company has incurred compliance costs related to maintaining its listing status, which could be avoided if delisted.
The Goh family also believes that the company is unlikely to need access to equity capital markets in the near future, and delisting would provide greater management flexibility.
The dividend of 0.7 cent per share for the financial year ended March 31, announced by the company on May 28, will still be paid to shareholders if approved at the annual general meeting, the family said.
Ossia International called for a trading halt on June 7 after market close, with its shares ending at 12 cents.
Following the announcement of the privatisation offer, the company has requested the lifting of the halt, in a separate bourse filing on June 12. THE BUSINESS TIMES
