Boustead Singapore 9D has made an unconditional cash offer of $1.18 to the shareholders of Boustead Projects Limited (BPL) . Following the completion of the offer, BPL will be delisted from the Singapore Exchange S68 Securities Trading (SGX-ST).
The company had previously made an unconditional cash offer of 95 cents on March 27. At the close of its previous offer, Boustead Singapore F9D had acquired 20.63% of BPL’s shares to increase its shareholding of BPL to 75.5%.
Of the 25.13% of BPL's shares available for purchase at the start of the previous offer, Boustead Singapore had acquired 82% of the available shares. Some 4.51% of BPL's shares are held by public minority shareholders who did not accept the previous offer.
As at the close of the previous offer, BPL had ceased to meet the free float requirements of SGX-ST and requested for its shares to be suspended from trading from March 28.
Subsequently, BPL obtained two three-month extensions from SGX Regulation (SGX RegCo) to comply with SGX-ST rules, during which time it was not permitted to make a second offer to its shareholders on terms better than those made under its previous offer.
At $1.18 per share, the current exit offer price is 23.6% higher than BPL’s last traded price of 95.5 cents and 24.2% higher than the 95 cents previously offered.
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It also represents approximately 20x and 0.9x BPL's consolidated earnings per share and net asset value (NAV) per share, respectively, for the last financial year.
Boustead Singapore will convene an extraordinary general meeting (EGM) before the end of 2023, to seek the approval of its independent minority shareholders in the acquisition of shares belonging to Wong Fong Fui and his children, who hold 19.99% shares in BPL.
BPL's minority shareholders will be able to tender their shares in BPL in connection with the exit offer as soon as it is open for acceptance, regardless of whether the proposed acquisition of Wong’s shares is approved at Boustead Singapore’s EGM.
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According to Boustead Singapore, the exit offer presents an opportunity for BPL shareholders to “fully realise” their investments at a premium without incurring brokerage costs.
Boustead Singapore says a potential 100% re-merger following BPL’s delisting would strengthen its resilience given BPL’s significant contribution to Boustead Singapore’s financial position.
Shares in Boustead Singapore closed 0.5 cents or 0.58% up at 86.5 cents on Nov 20.
