Aug 11, 2016

    Sim Lian stock rises after news of buyout offer

    SHARES of Sim Lian Group yesterday jumped 13.3

    per cent to $1.065, up

    12.5 cents by 12.40pm

    after it resumed trading.

    This followed Monday's announcement of a privatisation offer from

    a consortium led by

    the company's founder.

    The stock price has not been at this level for a year.

    It was also approaching the price of $1.08 per share that Coronation 3G is offering in its voluntary conditional cash offer for

    all the outstanding shares

    in Sim Lian that it does

    not already own.

    In the offer document, the offeror said: "The shares have not transacted at or above the offer price since the company's listing

    in 2000.

    "The offer provides

    an opportunity for shareholders who wish to realise their investment in the shares to do so in cash, at a compelling premium over the prevailing market prices and without

    incurring brokerage fees."

    The offeror has secured irrevocable undertakings representing 80.36 per cent of the total number of issued shares in Sim Lian from Sim Lian Holdings and a number of individuals from the Kuik family.

    The offer price, which is final, represents a premium of 14.9 per cent over the last traded price of $0.94 per share on Aug 4.