SINGAPORE (Mar 17): Fabchem China, the manufacturer of initiation systems and and detonating cords for explosives, has received a conditional cash offer by shareholder Henry Wee and his wife at 15.8 cents each.

The mandatory general offer was triggered after the couple raised their combined stake to 39.55%. The offer is conditional upon the Wees having received, by the close of the offer, valid acceptances for them to control more than 50% of Fabchem China.

Wee's wife, Tan Geok Bee, controls 9.65% in Fabchem through Fivestar Limited. On Friday, Wee acquired a 29.9% stake in the group from DNX Australia at 15.8 cents per share, which works out to be $2.2 million in total.

The offer price is 6.76% higher than the volume weighted average price of Fabchem China shares over the last 12 months. The offer price is also the last traded price of Fabchem China on March 1 before trading was halted pending an announcement.

The Wees are making the offer vehicle through Triple Vision.

Fabchem China has been on the Singapore Exchange watch-list since 2017.

The offer values Fabchem China at $7.4 million.

The offeror intends for Fabchem China to continue with its existing activities, however the new owners will “conduct a comprehensive review of the operations, management, and financial position of Fabchem China, and evaluate various strategic options”.

Wee also has a 2.2% stake in Sim Leisure Group and a 22.83% stake in Imperium Crown.

The second largest shareholder at 32.35% is Fabchem China is Fortsmith Investments which is owned by former executive director Sun Bowen, who is now non-executive, non-independent director. Sun is also executive chairman of Imperium Crown.

Trading in Fabchem China shares will resume on Monday.