Techcomp shares soar to record high on news of pending split

Techcomp shares soar to record high on news of pending split

By: 
Stanislaus Jude Chan
25/04/18, 04:52 pm

SINGAPORE (Apr 25): Shares of Techcomp (Holdings) surged as much as 78% to 66 cents on Wednesday, after the laboratory equipment manufacturer announced a proposed group reorganisation which would see it split into two parts.

This comes after Baodi International Investment Company, a firm linked to the government of China’s Yunnan province, last week agreed to buy over some 61.6% of the SGX Mainboard-listed Techcomp.

The reorganisation will see Techcomp break up into a “Remaining Group”, which will be controlled by Baodi, and a “Privateco Group”, which will be majority controlled by Techcomp president and executive director Lo Yat Keung.

After the split, Baodi will control Techcomp’s China-focused businesses while the rest will be controlled by Lo.

Baodi will make a mandatory cash offer of HK$3.267 per share to current shareholders to acquire all the issued shares.

Meanwhile, the Lo-controlled Privateco Group will cease to be a subsidiary of Techcomp, and will not be a listed security. Circle Brown, a company directly- and wholly-owned by Lo, is offering 84 HK cents a share in cash to shareholders.

“On a combined basis, the transactions represent an opportunity for the shareholders to realise a part of or their entire investment in the company for an aggregate cash exit equal to HK$4.107 per share ($0.694),” Techcomp says in a filing to the SGX on Wednesday.

As at 4.36pm, Techcomp shares in Singapore are trading 60.8% higher at 60 cents.

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