Memtech gets SGX nod for proposed delisting

Electronics components manufacturer Memtech International has been given the green light to delist once it has completed the compulsory acquisition by its controlling shareholders, the Chuang family.

The mainboard-listed firm also does not need to hold an extraordinary general meeting (EGM) to obtain shareholder approval for the delisting after the Singapore Exchange granted it a waiver from this rule.

Memtech said on Monday that it "would not be necessary" to expend time and expenses to call for an EGM, given that the Chuang family now controls at least 90 per cent of the firm.

This means it would be able to unilaterally determine the outcome of a delisting resolution at an EGM, Memtech said.

Shareholders who did not accept the buyout terms have the right to require the Chang family to buy their stock on the same terms as those under the offer.

In May, a consortium led by Memtech chairman Chuang Wen Fu made a voluntary conditional offer for all the company's shares.

It offered $1.35 in cash for each share, which valued the company at $189 million.

The offer price represented a premium of 23.9 per cent over Memtech's last transacted price of $1.09 on May 10.

The independent financial adviser said the offer was "fair and reasonable".

A version of this article appeared in the print edition of The Straits Times on July 17, 2019, with the headline 'Memtech gets SGX nod for proposed delisting'. Subscribe