Osim CEO offers to buy out company
THE chairman and chief executive of healthy lifestyle products provider Osim International has made a voluntary unconditional cash offer of $1.32 per share to take the company private.
Ron Sim Chye Hock made the offer through his private investment vehicle, Vision Three.
He owns 506.5 million shares in Osim, representing a 68.31 per cent stake as at March 7.
The offer price of $1.32 per share is pegged at a premium of about 31.8 per cent and 33.5 per cent to the volume-weighted average traded price per share respectively for the one-month and three-month periods up to and including Feb 29.
Osim said the offer provides an opportunity for its minority shareholders to sell their stakes at a significant premium over the prevailing share price amid challenging market conditions.
Mr Sim's bid to privatise the company comes after Osim posted a 66 per cent drop in net profit to $9 million for the fourth quarter of 2015.
Its full-year net profit also halved to $51 million for FY2015.
Shares in Osim last traded at $1.225 before a trading halt.
THE BUSINESS TIMES