Singapore-based cranes supplier Tat Hong Holdings Ltd could soon be delisted from the Singapore Exchange after its chief executive and managing director Roland Ng and Standard Chartered’s private equity arm have offered to acquire 90.31 per cent of the company’s shares.
According to the Listing Manual of the Singapore Exchange Securities Trading Limited, listed companies are required to ensure that at least 10 per cent of the total number of issued shares is at all times held by the public.
“In view of the above, the board wishes to highlight that the percentage of the total number of issued shares, excluding treasury shares, which are held in public hands has fallen to below 10 per cent,” Tat Hong said in a disclosure on Monday.
Tat Hong, whose shares are valued by the market at about S$345 million ($257 million), has been listed on the mainboard of the Singapore Stock Exchange since 2000.
The company claims to be the largest crane-owning company in the Asia-Pacific region with a fleet size of more than 1,500 crawlers, mobile and tower cranes ranging in size from under 50 tonnes to 1,600 tonnes. Tat Hong is ranked in terms of aggregate tonnage as the largest crane-owning company in the Asia-Pacific region and ninth worldwide.
It also owns the second largest tower crane fleet in China. The company operates in Southeast Asia, Australia, and China.
The acquisitions will be carried out by THSC Investments, the offering vehicle jointly owned by Standard Chartered Private Equity (Singapore) and Ng’s TH60 Investments.
According to the disclosure, THSC has offered to acquire an aggregate of 680.24 million shares, representing approximately 90.31 per cent of the total number of Tat Hong’s issued shares and 90.2 per cent of the maximum potential issued shared capital of the company.
THSC Investments believes that a privatised Tat Hong will yield more managerial flexibility and allow a better use of resources, according to the disclosure.
THSC Investments earlier said it does not intend to make major changes to Tat Hong’s business or its deployment of fixed assets for now, beyond the ordinary course of business.
The buyers first proposed to acquire Tat Hong’s shares at S$0.50 apiece in November 2017. The offer represents a premium of nearly 9 per cent Tat Hong’s closing price a day before the offer.
The offer has also turned unconditional and its closing date extended to 5.30pm on June 4.
“As the offeror, as a result of acceptance of the offer or otherwise, holds more than 90 per cent of the total number of issued shares, in accordance with Rule 1303(1) of the Listing Manual, the SGX-ST will suspend the trading of the shares only at the close of the offer,” Tat Hong said.
Also Read:
StanChart PE-backed THSC seeks to privatise SGX-listed Tat Hong for $286m
