Cheng Buck Poh, founder, executive chairman, CEO and controlling shareholder of Hai Leck Holdings , is offering to take the engineering company private at 55 cents per share via a scheme of arrangement.
The company last changed hands at 41 cents on Dec 3 before a trading halt was called the following day. As at Sept 30, Hai Leck's net asset value per share was 49.7 cents.
Cheng now has a total interest of 88.94% in the company via his direct stake and via a vehicle CCHPL.
According to the joint announcement by the company and Cheng Investment Management, the vehicle used to acquire the shares, Hai Leck made a loss of $0.1 million for the financial year ended June.
In contrast, the company made a profit of $4.3 million in the year earlier.
By taking the company private, Cheng can have the "necessary flexibility" to optimise its resources to focus on the longer-term strategies of the business.
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In addition, Hai Leck, which was listed in 2008, has not raised funds from the public equity markets since 2014 and it has no intention to do so in the "near future" and "therefore does not see a need to maintain its listing status to have such access."
