The offer price represents a premium of 34.1 per cent over the company’s last traded price on Dec 3
THE founder and chairman of Hai Leck Holdings, Cheng Buck Poh, has proposed to privatise the company at S$0.55 per share in cash via a scheme of arrangement.
As at Monday (Dec 9), the company has an issued and paid-up share capital of S$65.4 million, comprising 226.2 million shares.
Cheng is a controlling shareholder of Hai Leck, owning a total interest of 88.9 per cent of the company via his direct stake and vehicle Cheng Capital Holdings.
The offer price of S$0.55 per share represents a premium of about 34.1 per cent over Hai Leck’s last traded price of S$0.41 on Dec 3, the last full trading day before the offer announcement.
It also represents premiums of about 44.5 per cent, 50.7 per cent, 46.3 per cent and 50.1 per cent over the one-month, three-month, six-month and 12-month volume-weighted average prices, respectively, up to and including the last trading day.
Cheng and his family believe that the acquisition and delisting will allow them to dedicate and focus the resources required to “optimise the company’s operations and strategy as a wholly owned private subsidiary”.
As a wholly owned subsidiary, the company will also have the “necessary flexibility” to employ its resources more efficiently to focus on the longer-term strategies of the business.
Hai Leck was listed on the Singapore Exchange’s mainboard in 2008. Its core business is to provide project and maintenance services to the oil and gas petrochemical industries. It has a presence in Singapore and Thailand.
Shares of Hai Leck closed S$0.135 or 32.9 per cent higher at S$0.545 on Monday, after the announcement.
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