A consortium consisting of Tower Capital TCM Holdings L.P., investment company Temasek and certain members of the Eu family has made a voluntary conditional cash offer of 60 cents per share for all the issued shares of Eu Yan Sang it does not own.
As at the date of this announcement, the offeror says it has received irrevocable undertakings to accept the offer in respect of 63.2% of the total shares of the company from several Eu family shareholders, Aberdeen Asset Management Asia and First State Investment Management (UK).
“The offer price is final and excludes the interim dividend of 2.5 cents per share that was announced by the company on May 15,” says the offerer in its filing to the Singapore Exchange.
Eu Yan Sang is the manufacturer, retailer and distributor of TCM (traditional Chinese medicine) products. It also operates TCM clinics. The offer price values the company at roughly $269 million.
The stock last traded at 64.5 cents on May 10 before it requested for a trading halt but the offeror was quick to stress that the offer price “represents a premium of approximately 17% and 25% to the volume weighted average price per share for the corresponding three-month and six-month periods up to and including 9 May 2016, being the last full trading day prior to the announcement of the Offer.”
It also said the offer price is significantly higher than analysts’ target price range of 30-36 cents per share, and implies a Price/Earnings ratio for the company of 58.8x, based on the earnings per share of 1.02 cents for the financial year ending June.”
“We believe the offer price presents an attractive offer to EYSI shareholders in view of the Company's recent financial performance and the current challenging environment it is operating in. Considering the low trading liquidity of the Shares, the offer provides shareholders with more certainty, through an exit opportunity to realise their investment at a premium. The consortium’s acquisition of the company will allow the new investors to partner with the participating Eu family shareholders in their efforts to invigorate the Company’s businesses.” says private equity investor Danny Koh Thong Meng, who owns investment holding company Tower Capital.
The offerer has stated that in the event the company does not meet the 10% free float requirements of the listing manual, it “does not intend to maintain the present listing status of the company.”
Credit Suisse (Singapore) Limited is acting as the exclusive financial advisor to the offeror. UOB Venture Management Private Limited is one of the investors in Tower Capital.
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As at the date of this announcement, the offeror says it has received irrevocable undertakings to accept the offer in respect of 63.2% of the total shares of the company from several Eu family shareholders, Aberdeen Asset Management Asia and First State Investment Management (UK).
“The offer price is final and excludes the interim dividend of 2.5 cents per share that was announced by the company on May 15,” says the offerer in its filing to the Singapore Exchange.
Eu Yan Sang is the manufacturer, retailer and distributor of TCM (traditional Chinese medicine) products. It also operates TCM clinics. The offer price values the company at roughly $269 million.
The stock last traded at 64.5 cents on May 10 before it requested for a trading halt but the offeror was quick to stress that the offer price “represents a premium of approximately 17% and 25% to the volume weighted average price per share for the corresponding three-month and six-month periods up to and including 9 May 2016, being the last full trading day prior to the announcement of the Offer.”
It also said the offer price is significantly higher than analysts’ target price range of 30-36 cents per share, and implies a Price/Earnings ratio for the company of 58.8x, based on the earnings per share of 1.02 cents for the financial year ending June.”
“We believe the offer price presents an attractive offer to EYSI shareholders in view of the Company's recent financial performance and the current challenging environment it is operating in. Considering the low trading liquidity of the Shares, the offer provides shareholders with more certainty, through an exit opportunity to realise their investment at a premium. The consortium’s acquisition of the company will allow the new investors to partner with the participating Eu family shareholders in their efforts to invigorate the Company’s businesses.” says private equity investor Danny Koh Thong Meng, who owns investment holding company Tower Capital.
The offerer has stated that in the event the company does not meet the 10% free float requirements of the listing manual, it “does not intend to maintain the present listing status of the company.”
Credit Suisse (Singapore) Limited is acting as the exclusive financial advisor to the offeror. UOB Venture Management Private Limited is one of the investors in Tower Capital.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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