NeraTel receives mandatory offer from Ennoconn Corp at S$0.075 per share

NERA Telecommunications (NeraTel) has received an offer from Taiwan-listed Ennoconn Corporation for all the shares in the company it does not own at S$0.075 apiece, the company announced on Wednesday (Sep 4).

This comes after Ennoconn Corporation on Wednesday entered into a share purchase agreement with Asia Systems for the purchase of close to 193.2 million shares in the issued and paid-up ordinary share capital of NeraTel for S$0.075 per share.

The amount of shares represents nearly 53.4 per cent of the total amount of shares in NeraTel.

As Ennoconn Corp acquired over 50 per cent of NeraTel’s shares, a mandatory unconditional cash offer for the remaining shares it does not own was triggered, under Rule 14 of the Singapore Code on Take-overs and Mergers.

The offer price is a 6.3 per cent discount to the last transacted price per share on Wednesday, which was the last full day of trading before the announcement.

It is also a 5.1 per cent discount to the volume-weighted average price (VWAP) of the shares traded in the month prior to the offer, and a 3.8 per cent discount to the VWAP of the shares traded in the three-month period prior to the offer.

The shares acquired will be held by Ennoconn Solutions Singapore, a wholly owned subsidiary.

Ennoconn Corp’s main business is manufacturing and sale of data storage, processing equipment and industrial motherboards. It noted that it is enhancing its strategy for one of its solutions and that the acquisition of NeraTel can leverage the synergies between the two companies, as well as optimise order acquisition and financial performance.

The offeror said it does not intend to revise the offer price of S$0.075 per share. It intends to maintain the listing status of NeraTel and does not expect to exercise any rights of compulsory acquisition.

Shares of NeraTel closed flat at S$0.08 on Wednesday, before the announcement.