Private equity firm Southern Capital Group is offering to acquire RE&S Holdings 1G1 at 36 cents each, valuing the F&B operator at $127.4 million.
RE&S shareholders may also accept an alternative offer of 33 cents cash and 0.083143 new offeror shares.
RE&S, which was listed back in November 2017 at 22 cents, operates a chain of Japanese restaurants under brands such as Ichiban Boshi, Kuriya Japanese Market and Gokoku.
A group of existing RE&S shareholders and executive directors have already undertaken to sell their combined shares of 84.1%.
They include company president Hiroshi Tatara, who is the single largest shareholder with a stake of 62.32%; Yek Hong Liat John, who holds 16.96%; CEO Foo Kah Lee and Lim Shyang Zheng.
As indicated in a joint statement, given the low trading volume, the offer provides RE&S shareholders an opportunity to liquidate and realise their investments at a premium to the prevailing market prices.
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“This is another significant milestone in the company’s development and growth trajectory, and our employees and staff will be further motivated by Southern Capital Group’s compelling interest and participation," says Foo.
"We look forward to the opportunity of partnering with the (RE&S) for its next phase of growth and are pleased to put forward this privatisation offer to shareholders that will allow an exit of their investment at an attractive price," says Kenneth Tan, CEO of SCG.
DBS Bank is the sole financial adviser to SCG for this deal.
