Shanghai-listed Milkyway Chemical, via its wholly-owned Singapore-incorporated subsidiary, Milkyway International Chemical Supply Chain, has made a firm offer of 22.66 cents per share for LHN Logistics . The offer price is said to be final.
Milkway Chemical had previously made a pre-conditional offer offering the same amount for the shares in LHN Logistics on June 4. The deal was conditional upon LHN’s shareholders approving the sale and obtaining written consent from JTC for the change in LHN’s indirect ownership in Hean Nerng Logistics, LHN’s wholly-owned subsidiary. Hean Nerng Logistics owns the property located at 7 Gul Avenue.
The offer comes after both conditions were fulfilled on July 31.
As at Aug 2, Milkyway received irrevocable undertakings from Fragrance Limited and LHN Group, who hold a total of 140.94 million shares representing 84.05% of the total stake in LHN Logistics.
Fragrance Limited holds 54.04% of the total shares in LHN Limited, which, in turn, holds the entire issued and paid-up share capital in LHN Group.
The offer price represents a premium of around 35.69% over the volume-weighted average price (VWAP) per share for the one-month period up to and including June 1 for the shares in LHN Logistics.
According to Milkyway, the offer presents an opportunity for shareholders to exit their investment in the company, which has seen low trading liquidity since its listing in April 2022. Besides, since its listing price of 20 cents in April 2022, shares in LHN Logistics have never gone above their listing price.
Should the offer go through, Milkyway intends to delist and privatise LHN Logistics. It adds that intends for LHN Logistics to continue with its existing activities and has no intention to introduce any major changes to the company among other things.
Shares in LHN Logistics closed flat at 22.5 cents on Aug 2.
