Koh Wee Meng, CEO of Fragrance Group, has bid to take the company private, offering S$0.138 a share, a premium of around 16.9 percent over the stock’s close price of S$0.118 Thursday, the property developer said in a filing to SGX Friday.
The offer for the developer of residential, commercial, hotel and industrial properties came from investment holding company JK Global Treasures, which has Koh as the sole shareholder.
Koh has already given an irrevocable undertaking to sell his 74.7 percent stake to JK Global Treasures, the filing said. Lim Wan Looi, an executive director and Koh’s spouse, also will sell her 10.9 percent stake in Fragrance in the deal.
The offer is conditional on receiving acceptances from at least 90 percent of the outstanding shares, with 85.75 percent already pledged, Fragrance said. After receiving acceptances for at least 90 percent of the free-floating shares, JK Global Treasures can acquire the remaining shares on a compulsory basis and delist the company.
The company said it would be otherwise difficult for shareholders to exit their investment, given the stock’s low trading liquidity, with the average daily trading volume as a percentage of issued shares at just 0.002 percent over the past 12 months.
“The offeror is of the view that the company is unlikely to require access to Singapore equity capital markets to finance its operations in the foreseeable future. Accordingly, the offeror does not believe it is necessary for the company to maintain a listing on the SGX,” the filing said.
Fragrance hasn’t raised any equity capital since its initial public offering in 2005, the filing said.