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A consortium led by Poh Choon Ann, chairman of Poh Tiong Choon Logistics, is offering to takeover the Singapore mainboard-listed company at $1.30 per share, reported the Business Times.
Representing a 32.5 percent premium of the one-month volume weighted average price per share, the offer effectively values the company at $275.5 million. It was made via Respond Logistics, a vehicle used by the consortium which comprises Poh and Tower Capital Asia affiliate, Tower Capital Logistics LP.
To date, owners with 66.7 percent of shares have inked irrevocable undertakings to accept the offer. Poh Tiong Choon will be privatised and delisted upon completion of the deal.
Operating under a challenging business environment, the company continued to be affected by interest rate fluctuations, costs as well as the tightening of the labour market, said Poh, who also serves as CEO.
“We believe the offer price presents an attractive offer to the shareholders of the company who find it difficult to exit the company as a result of the low trading volume in shares,” he said.
The delisting will also allow the land transportation and warehousing services provider to save on expenses connected to maintaining a listed status while focusing its resources on business operations.
Founded in 1950, Poh Tiong Choon was listed on the Singapore Exchange in 1999.
The trading volume of the company’s shares has been low, with average daily trading volume at around 12,000 shares for the one month to 19 September 2017.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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