Home appliance and furniture retailer Courts Asia has received a takeover bid from Nojima Asia Pacific, a subsidiary of Nojima Corp., for S$0.205 a share, it said in a filing to SGX in the early hours of Friday.
The offer price is an around 35 percent premium above its closing price on its last trading day. The shares closed at S$0.152 on Wednesday; Courts Asia requested a trading halt on Friday.
Tokyo-listed Nojima is an electrical appliance retail chain mainly dealing with digital appliances, including AV-related equipment, consumer electronics and IT-related equipment as wells as shops selling mobile phones and providing Internet services in Japan, the filing said. It also sells digital appliances in Cambodia, it said.
Nojima has received a pledge from Singapore Retail Group that it would tender all of its 382 million shares, or around 73.8 percent of Courts Asia, to the offer, the filing said. It added it would consider delisting Courts Asia if it receives enough acceptances of its offer as it would facilitate operational control. If the free float of the share falls below 10 percent, an offerer can compulsorily acquire the remaining shares.
Nojima Asia Pacific has been considering entering the growing consumer appliance retail market in Southeast Asia, and acquiring Courts Asia would provide a strong foothold in the region, the filing said.
It added that Courts Asia is complementary to its business, with the potential for synergies, including cross-selling to a bigger customer base, economies of scale, improved productivity and knowledge sharing.