LHN Logistics, which was spun off for its own listing from LHN just last April, is now the subject of a general offer.

A Shanghai-listed logistics company, Milkyway Chemical Supply Chain Service Co, via a local-incorporated unit, is offering 22.66 cents for LHN Logistics, valuing it at around $38 million.

LHN Logistics was listed at 20 cents last April in an all-placement offer.

Since it started trading, it has never gone above the IPO price and changed hands for as low as 12 cents last December.

Milkyway's offer price is a premium of 34.8% over LHN Logistics' last traded price.

Kelvin Lim is the executive chairman of both LHN and LHN Logistics. The former focuses on growing its portfolio of co-living properties while the latter focuses on logistics.

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LHN's stake in LHN Logistics is held via an entity called LHN Group Pte Ltd.

According to RHT Capital, which is advising the deal, LHN Group has already committed to selling its controlling stake of 84.05% in LHN Logistics.

However, the deal, for now, is pre-conditional.

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First, shareholders of LHN, which is quoted on both the Singapore and Hong Kong exchanges, are to approve the sale.

Next, written consent has to be given by JTC Corporation for the change in LHN’s indirect ownership in Hean Nerng Logistics, LHN's wholly owned subsidiary, in connection with its holding of the property located at 7 Gul Avenue.

According to RHT, Milkyway's offer is final.

China's Milkyway Chemical makes 22.66 cents GO for LHN Logistics

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China's Milkyway Chemical makes 22.66 cents GO for LHN Logistics

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