CKM (Cayman) has made a pre-conditional exit offer of S$0.55 a share in cash for all of Citic Envirotech’s shares in connection with a proposed voluntary delisting of the waste-water treatment company, the offerer said in a filing to SGX Wednesday.
The exit offer price is a premium of around 68.5 percent over Citic Envirotech’s three-month volume-weighted average price, the filing said, adding the offer values the company at around S$1.34 billion.
“The exit offer price provides an attractive and liquid cash opportunity for shareholders who are not prepared to bear the business risks associated with the company to realize a clean exit at a premium,” Hao Weibao, president and vice chairman of Citic Envirotech, said in the statement.
“The successful delisting of the company will enable us, together with the management, to have a longer horizon to manage and
plan the business. This offers more control and flexibility to drive the future growth of the company,” Hao added.
CKM believes the company isn’t likely to need to access Singapore’s capital markets to finance operations in the foreseeable future, and delisting will save the company on compliance and related costs, the statement said.
The preconditions for the offer are regulatory approvals in China, the filing said.
The offer requires application to SGX for delisting and seeking the approval of Citic Envirotech’s shareholders in an extraordinary general meeting, the filing said.
CKM has received irrevocable undertakings for a
CKM, an investment holding company based in the Cayman Islands, is an indirect, wholly owned subsidiary of Citic Environment Investment Group, which is a member of the Citic Group.
CLSA Singapore is the sole financial adviser to CKM on the offer, the filing said.