Mainboard-listed property developer Soilbuild Group Holdings has announced that it has received a privatisation offer from Dolphin Acquisitions Ltd valued at around S$418 million, or about $0.80 per share.
The exit offer will also include the acquisition of all shares held by managing director Lim Chap Huat, his wife and children, and his investment holding company CHL Holdings Pte Ltd.
At $0.80 per share, the exit offer, which will not be dependent on a minimum number of acceptances received, is at a 13.48 percent premium to the last traded price of the counter at $0.705 on Friday.
Compared against the stock’s six and 12-month volume weighted average prices, the offer is at a 12.52 per cent and 21.95 percent premium, respectively.
The exit offer and de-listing is conditional upon approval by the Singapore Exchange.
Soilbuild said the proposed de-listing was due to several factors, including low trading liquidity of shares, greater management flexibility and related compliance costs of listed status.
Soilbuild will appoint an independent financial adviser for its directors and arrange an extraordinary general meeting to seek the approval of shareholders for the de-listing.
Dolphin Acquisitions has “no immediate intention to introduce any major changes to the existing business, redeploy the fixed assets, or discontinue employment in the immediate future”, said Soilbuild.