Allied Technologies gets takeover offer

Measuring tools. Credit: Fleur on UnsplashMeasuring tools. Credit: Fleur on Unsplash

Allied Technologies has received a conditional takeover bid of S$0.0088 a share in cash from SRS Auto Holdings, according to a filing to SGX.

The offer price is a 20 percent discount to the stock’s last traded price of S$0.0110 in May 2019, the filing said.

The offer is conditional on the offeror receiving valid acceptances of at least 90 percent of Allied Tech’s shares, the filing said. That would entitle the offeror to compulsorily acquire the remaining shares and delist the company.

Currently, the offeror and persons acting in concert own, control or have agreed to acquire 756.02 million shares, or around 42.71 percent of the total, the filing said. The 42.71 percent is currently held by 21 investors who have provided irrevocable undertakings for the offer, the filing said.

The offeror said the bid will give shareholders the chance to exit their investment, which is currently difficult as the shares have been suspended since May 2019.

In addition, “the offeror believes that privatising the company will provide the offeror with more flexibility to manage the business of the company and optimise the use of the company’s management and resources during this time of economic uncertainty,” the filing said.

Allied Tech said it would appoint an independent financial adviser (IFA) to advise the independent directors.

Allied Tech manufacturers precision stamped metal parts and provides precision manufacturing services, including design and product development, tool and die fabrication, mass production, plastic injection molding and other services.