Boustead Singapore has launched a voluntary unconditional offer for all the shares in Boustead Projects it does not own for 90 cents each.
The company intends to privatise Boustead Projects and delist it from the Mainboard of SGX-ST.
As at Feb 6, Boustead Singapore directly holds 171 million shares representing approximately 54.87% of the total number of issued shares of Boustead Projects.
The proposed acquisition of the shares is in line with Boustead Singapore’s intentions and ongoing strategic reviews and objective to streamline its investments, businesses, operations and the corporate structure of the group.
The company notes that Boustead Projects’ engineering and construction (E&C) business had been impacted by the Covid-19 pandemic, having been posting significantly lower profits compared to historical profit during the pre-pandemic period.
Boustead Singapore believes that the proposed acquisition would allow it to focus on rebuilding its business, including its E&C business as a private limited company without the additional obligations that come with being a listed company on the Mainboard of the SGX-ST.
See also: SGX RegCo says Boustead Projects has to restore free float
It said the proposed acquisition would allow for a simplification of the group structure and reduce organisational complexity. This would then allow for a sharper focus in operations and increase competitiveness, enhancing shareholder value.
The offer provides an opportunity for shareholders to realise their investment at a premium to prevailing market prices, representing a premium of approximately 7.8% over the last traded price per share as quoted on Feb 3.
It also represents a premium of 15.2% over the last volume-weighted average price of the shares for the one-month period prior to and including the announcement date.
Shares in Boustead Projects closed 0.5 cents higher or 0.6% up on Feb 6 at 84 cents.
