GATXH Holdings announced Friday it has made a voluntary, unconditional offer to acquire all of Raffles United for S$0.065 a share, with plans to delist the company.
GATXH, which was incorporated in Singapore in July, is 50 percent owned by Teo Xian-Hui Amanda Marie, or TXH, with the remainder held by Teo Teng Beng, the offerer said in a filing to SGX.
TXH indirectly owns 96.02 percent of Raffles United via her wholly owned company Raffles Infinity Holdings, the filing said.
In July, Raffles Infinity Holdings, a special purpose vehicle, made a mandatory unconditional cash offer for all of Raffles United’s shares at S$0.065 each.
After the offer closed, Raffles Infinity owned, controlled or agreed to acquire 96.02 percent of Raffles United’s shares, which required the shares be suspended from trading, the filing said.
Raffles Infinity has agreed to accept the offer from GATXH, the filing said.
Once its stake in Raffles United exceeds 90 percent, GATXH plans to compulsorily acquire all of the remaining shares of Raffles United, the filing said.
“The offeror believes that privatising the company will give the offeror and the management of the company more flexibility to manage the business of the company, optimise the use of its management and resources and facilitate the implementation of any operational change,” GATXH said in the filing.
GATXH noted Raffles United shares had low average daily trading volume of less than 0.01 percent of the total number of issued shares before their suspension.
“Hence, the offer represents a unique cash exit opportunity for Shareholders to liquidate and realise their entire investment, an option which may not otherwise be readily available due to the low trading liquidity of the shares,” GATXH said. “Additionally, given the trading suspension, there is no public market for the disposal of the shares.”