Sakae Holdings’ executive chairman and controlling shareholder, Douglas Foo, plans to sell 27.79 million shares for $26.5 million.
The shares represent some 20.0% of the total number of issued shares in Sakae.
The purchase price works out to 95.3 cents per share, a very significant premium over Sakae Holdings' last traded price of 9.9 cents at close of July 18.
As at Dec 31 2022, the company's net asset value per share was 42.42 cents, down slightly from 42.92 cents as at June 30 2022.
The buyer is an asset manager called Makara Capital.
"Completion of the proposed sale is subject to the fulfilment of certain conditions precedent provided in the agreement," the company says on July 19.
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After the completion of the proposed sale, Foo will remain as the company’s executive chairman and controlling shareholder with a remaining stake of 46.15% in the company. His stake amounts to some 64.13 million shares left in Sakae Holdings.
For its 1HFY2023 ended Dec 2022, the company reported that revenue increased by 9.4% y-o-y to $9.2 million. However, earnings dropped by 74.3% y-o-y to $9,000.
In its earnings commentary, Sakae Holdings says while revenue is growing following the pandemic, the industry continues to face rising raw materials and manpower costs.
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"The group remains hopeful that the recent opening of international travel borders in neighboring countries will contribute more to the rate of recovery," the company says.
Sakae Holdings shares ended July 19 at 22 cents, up 12 cents, or 122.22%.
