Bid to delist Aztech at 42 cents a share
AZTECH Group has received a voluntary delisting proposal with an exit offer of 42 cents a share from a special-purpose vehicle whose sole shareholder and director is Michael Mun Hong Yew.
He is the company's largest shareholder, and group chief executive and chairman.
The delisting proposal to acquire all the shares in the company was submitted by Maybank Kim Eng Securities and announced by the firm yesterday.
The offer price represents a 29.2 per cent premium over 32.5 cents - the last traded price prior to the joint announcement, and a 38.3 per cent and 21 per cent premium over Aztech's volume-weighted average price of one month and three months respectively.
Parties acting in concert with the offeror are Mr Mun's three sons - including Jeremy Mun Weng Hung, Aztech's executive director - and his brother.
Together with Mr Mun Hong Yew and AVS Technologies, a firm controlled by him, they collectively own 25.6 per cent of Aztech.
Mr Mun Hong Yew owns a 23.9 per cent interest in Aztech.
The offeror has obtained an irrevocable undertaking from Mr Mun Hong Yew and the rest of the concert parties to vote in favour of the delisting exercise.
The delisting offers shareholders an opportunity to realise their investments for a cash consideration at a premium.
Furthermore, the trading liquidity of Aztech shares in the past year has been thin.
The offeror believes that the delisting would provide the company's management with greater flexibility to manage and develop the existing businesses without the attendant cost, regulatory restrictions and compliance issues associated with its listed status on Singapore Exchange.
The company said the offeror does not intend to revise the exit offer price.
THE BUSINESS TIMES