A consortium led by Poh Tiong Choon Logistics’ chief executive is offering to take over the Singapore-listed firm in a deal that values it at about S$276 million ($205 million), the latest in a trend of management-led buyouts in the city-state.
The consortium, which comprises company CEO and Chairman Poh Choon Ann and an affiliate of Tower Capital Asia, a private equity investor, said in a statement it is offering S$1.30 in cash for each share.
Poh Tiong Choon, which provides land transportation and warehousing services, will be privatised and delisted after the deal.
Similar deals in Singapore include Global Logistic Properties’ takeover by a buyout group backed by its senior executives and ARA Asset Management’s acquisition by a consortium that included its founder.
The buyers cited the stock’s low trading liquidity and cost saving from delisting among reasons for the takeover. Insiders control about 54 percent of the company, Thomson Reuters data shows. Last September, some of the company’s substantial shareholders had said they would seek a strategic review of their shares.
The offer represents a 1.1 percent discount to the stock’s closing price on Sept. 14, its last full trading day. The consortium said the offer price was at a 32.5 percent premium to its one-month traded average price. Trading was halted on Wednesday morning.
The consortium said it had secured irrevocable undertakings from shareholders holding about 66.7 percent of the shares to accept the offer.