Sim Lian to exit SGX at $1.08 per share

Shares have been trading below value.

At the advice of OCBC Bank, Sim Lian Group Limited is going private through a non-negotiable voluntary conditional cash offer of $1.08 by Coronation 3G Pte. Limited, an investment holding company of its founder, Kuik Ah Han.

Sim Lian reasoned that it seeks to delist the company from SGX as shares have not traded at or above the offer price since its listing in 2000.

The offer price gives shareholders a compelling and liquid cash exit opportunity, and it represents a premium of 26.5% and 28.0% over the 6-month and 12- month VWAP, according to a statement by Sim Lian.

“Coronation 3G has secured irrevocable undertakings representing 80.36% of the total number of issued shares. The offer is conditional on Coronation 3G receiving acceptances of 90% of the total number of issued shares,” Sim Lian said in the release.

“Coronation 3G’s offer is for all the issued ordinary shares in its capital, other than those already owned, controlled or agreed to be acquired by Coronation 3G. as of the 9 August 2016. It includes issued shares owned, controlled or agreed to be acquired by parties acting or deemed to be acting with Coronation 3G,” Sim Lian added.