Aztech to exit SGX at $0.42 per share

The group seeks more investment opportunities and management flexibility.

Aztech Group Limited is joining the ranks of Singapore firms who wish to exit the securities market as its CEO Mun Hong Yew offered to buy the company’s ordinary shares at $0.42 per share.

According to Aztech, the issued and paid-up share capital of the company consists of more than 51 million shares including 2.4 million shares held in treasury. The exit offer price shall be applicable to any number of offer shares that are tendered in acceptance of the exit offer. The offer shares will also be fully paid and free from all encumbrances.

Mun is seeking to delist Aztech from SGX-ST through his wholly-owned investment holding business, AVS Investments Pte. Ltd., a special purpose vehicle incorporated locally for the purpose of the exit offer.

Aztech cited low trading liquidity (last trading price was $0.325), listing compliance costs, desire for greater management flexibility, and pursuit of opportunities to realise investments with an upfront premium as reasons for group’s privatisation.

It also noted it has no present need for access to Singapore capital markets.

“The company has not carried out any exercise to raise cash funding on the SGX-ST in the past five years and it is unlikely that the company will require access to the Singapore capital markets to finance its operation in the foreseeable future,” Aztech added.