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
"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.
THE BUSINESS TIMES