BEST World on Wednesday (Apr 3) proposed to offer S$2.50 in cash per share by way of a selective capital reduction to eligible shareholders to privatise the business.
The offer price represents a premium of 42.9 per cent over the last traded price of S$1.75 on Mar 21, the last full trading day prior to the delisting intention announcement on Mar 22.
It also represents a 12.6 per cent premium over the latest closing price of S$2.22 on the day before the offer announcement, and an 82.5 per cent premium over the net asset value per share of S$1.37 as at Dec 31, 2023.
Some 150.1 million shares of the eligible shareholders, excluding the company’s major shareholders who are involved with the business, will be cancelled, subject to these shareholders’ approval at an extraordinary general meeting and the High Court’s approval of the exit offer. This will reduce the company’s shares by about 34.9 per cent to 280.3 million.
The company also said it will capitalise part of its retained earnings before undertaking the selective capital reduction exercise to finance the aggregate sum of S$375.4 million in cash arising from the scheme.
“Upon completion of the selective capital reduction, if effected, the non-participating shareholders will remain as shareholders of the company and collectively hold the remaining 280,297,500 shares that are not cancelled, representing the entire equity share capital of the company,” Best World noted.
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It reiterated “growth headwinds” and macroeconomic uncertainties as reasons for the exit offer. It added that privatisation will provide the “necessary flexibility to optimise its resources to focus on the longer-term strategies of the business”.
Best World : CGN 0%’s counter closed 2.2 per cent, or S$0.05, lower at S$2.22 before the announcement.
