SGX-listed Eastern Asia Technology, the maker of speakers and digital audio-video (AV) products, says it has received a delisting proposal from DJR International, a company largely owned by Eastech’s founder and CEO Liou Jenq Lin and his family.

DJR and the parties acting in concert with it collectively own 30.41% of Eastech’s total issued share capital of 454,237,246 ordinary shares.

Under the delisting proposal, DJR will make an exit offer of 13.8 cents in cash for each offer share.

According to the joint announcement issued by Eastech and DJR, the exit offer price represents a premium of 31.43% over the last transacted price of 10.5 cents as at Aug 3. The offer price is also at a premium of 38.99% and 38.11% over the volume weighted average price (VWAP) per share for the respective one-month and three-month periods, prior to the date of this announcement.

DJR, which is being advised by PrimePartners Corporate Finance, believes that its offer represents a clean cash exit opportunity as Eastech currently faces several challenges which include a highly unpredictable industry and loss of competiveness as a result of its obligation to publicly disclose a substantial amount of information relating to the company’s financial performance and product development.