Taiwan-listed Ennoconn Corporation, having secured majority control of Nera Telecommunications N01 from its current controlling shareholder, is making a 7.5 cents per share offer for the other minority shareholders.
The offer values the Singapore-listed company at around $27.14 million.
Ennoconn, which has been listed since 2014, is in the business of making and selling data storage, processing equipment and industrial motherboards.
Ennoconn, advised by DBS Bank, is paying Asia Systems $14.49 million for its 53.38% stake in NeraTel.
At the transacted price of 7.5 cents, it represents a 6.3% discount to the volume weighted average (VWAP) price of NeraTel’s shares traded on Sept 4. It also represents a 5.1% discount to the VWAP of 7.9 cents for NeraTel’s shares traded over the last one month.
Under Singapore's listing rules, Ennoconn is required to make an offer for the remaining shareholders at the same price.
Ennoconn plans to keep NeraTel listed and does not intend to revise the offer price. On completion, the acquired shares will be held by Ennoconn Solutions, a wholly-owned unit.
According to Ennoconn, it wants to leverage its synergies with NeraTel as part of its ESaaS (or Ennoconn Solution as a Service) platform. The acquisition is seen to beef up Ennoconn’s presence in markets including Singapore, Vietnam, Thailand and Malaysia.
“By aligning efforts in ‘products, applications, platforms and markets’, [Ennoconn] and [NeraTel] will strengthen core competencies and expand their market footprint,” adds the release.
See also: Broadway Industrial Group offer turns unconditional; offer will now close on Dec 23
Shares in NeraTel closed flat at 8 cents on Sept 4.
