UPDATE: Kuok-tied Quetzal Capital makes bid to acquire PACC Offshore Services

An aerial view of Singapore’s portAn aerial view of Singapore’s port

This article was originally published on Monday, 4 November 2019 at 22:23 SGT; it has since been updated to include comment from PACC Offshore Services Holdings.

Quetzal Capital said Monday it has made a conditional offer to acquire all of PACC Offshore Services Holdings (POSH) for S$0.215 a share, marking a 97.2 percent premium over the stock’s closing price on 30 October.

“The offer presents shareholders with a unique cash exit opportunity to realize their entire investment in POSH at an attractive premium over prevailing trading prices,” Quetzal Capital said in a filing to SGX. “This may otherwise be difficult due to the low trading liquidity of the shares.”

Quetzal Capital said the offer price is final and is conditional on receiving acceptances for at least 90 percent of POSH’s outstanding shares.

“The offerer is making this offer in view of the continuing challenges in the global offshore oil and gas sector, as it believes that privatising POSH will provide it with more flexibility to manage POSH’s operational and funding requirements, and also optimize the use of POSH’s resources,” Quetzal Capital said.

Quetzal Capital plans to compulsorily acquire the remaining shares if acceptance top 90 percent, and then delist POSH from SGX, the filing said.

The offerer has secured irrevocable undertakings for around 75.03 percent of POSH’s shares from Kuok (Singapore), or KSL, and KSL’s wholly owned subsidiary, Camsward, the filing said.

In a separate filing to SGX on Tuesday, POSH said it would appoint an independent financial adviser for the offer and send a circular with the recommendation to shareholders.

OCBC is Quetzal Capital’s financial adviser on the deal, the filing said.

 

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