Hedge fund Argyle Street Management has joined forces with Lippo China Resources to make a voluntary unconditional offer for TIH.
TIH, formerly Transpac Industrial Holdings, is an investment fund. The offer price is 57 cents a share, TIH said in a Singapore Exchange announcement late on Monday. This a 12.87 per cent premium over the closing price of 50.5 cents on Monday.
Argyle Street Management already owns 54.2 per cent of TIH. The offer for the remaining shares would represent an outlay of about $63.12 million.
The offer comprises 12.5 cents in cash and 44.5 cents paid by the issue of a three-year senior unsecured 2.25 per cent note.
Interest payable on the offeror notes brings the consideration for the deal up to around $66.6 million, the Hong Kong-listed Lippo China Resources and parent company Lippo said in a filing on the Stock Exchange of Hong Kong yesterday.
Lippo owns 75 per cent of Lippo China Resources.
The bid vehicles and their parent firms may transfer TIH shares among themselves after the close of the offer, according to the offer document.
Such transfers, if made, would be done at the offer price and completed within 12 months of the offer's close.
Argyle Street Management said it struck the deal as some of the funds it manages are maturing and it is "under a duty to provide the investors in such funds an opportunity to exit in an orderly manner".
Some of its investors would prefer to divest certain illiquid holdings from the fund's parties that now have their money in TIH.
But Argyle Street Management added that it "continues to believe in the underlying value of TIH over the long term".
It said the introduction of Lippo China Resources as a shareholder with joint control of TIH "will enhance the ability of TIH to source for investment opportunities, given (Lippo China Resources') extensive access and network to significant strategic players".
The Lippo group said that TIH "matches the group's strategy to expand their scope of business in securities and fund investments in Asia".
The joint offerors said they intend to keep TIH listed here.
The offer will remain open for at least 28 days.
TIH shares ended 5 per cent higher at 53 cents yesterday.