Delong Holdings requested on Friday a mandatory suspension of its shares pending an announcement from the Best Grace Holdings, which has made an offer to acquire all of the company’s shares.
“The company will continue to engage the offeror to expedite the release of any material announcement and lift the suspension,” Delong said in a filing to SGX on Friday.
Companies are required to maintain an at least 10 percent free float of their shares, with a mandatory suspension required if the free float falls below that amount.
In late September, Delong’s CEO and executive chairman Ding Liguo made an offer via special purpose vehicle Best Grace Holdings to acquire all of the company’s shares for S$7.00 each.
Ding Liguo and his wife, Zhao Jing, were deemed interested in 83.26 million shares, or around 75.56 percent of Delong’s shares, which are held by Best Decade Holdings, it had said in an SGX filing in late September. Best Decade had given an irrevocable undertaking that it will accept the offer for the Delong shares, it had said.
The offer price was a 8.0 percent premium over the volume weighted average price of the stock for the past month, it had said in the SGX filing.