3HA Capital to delist watch-listed CosmoSteel after buyout offer accepted
This comes as an offer by investment holding company 3HA Capital to privatise the group has received valid acceptances in respect of some 236.1 million shares, representing some 90.3 per cent of the piping systems provider's total shares.
As at 6 pm on Thursday (Jul 31), the offeror – 3HA Capital – and its concert parties own, control or have agreed to acquire around 237.1 million shares, representing 90.7 per cent of CosmoSteel's total issued shares. This means that less than 10 per cent are now publicly held.
3HA Capital said on Thursday that it intends to compulsorily acquire all the offer shares it does not yet own and subsequently delist CosmoSsteel from the SGX.
The offer will close at 5.30 pm on Friday.
Chance for shareholders not willing to 'bear risks'
On May 15, 3HA Capital made a voluntary conditional cash offer for all CosmoSteel shares at a price of S$0.20 per share.
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3HA Capital is a special purpose vehicle whose shareholders include Hanwa Singapore, a wholly owned unit of Tokyo-listed Hanwa Co, which in turn is a controlling shareholder of CosmoSteel. Hanwa Co owned some 82.6 million shares of CosmoSteel or around 31.6 per cent of its entire paid-up issued capital, as at May 15.
The offeror noted that the piping systems provider has remained on the SGX watch list since June 2018, and faces potential suspension from trading if it fails to meet the watch-list exit criteria by the extended Jun 4 deadline.
3HA Capital said that the offer was an opportunity for shareholders 'who are not prepared to bear the risks associated with the company' to realise their investments at a premium to historically traded prices.
It added that the offer price was a premium of 48.1 per cent over the counter's last traded price of S$0.135 on May 14.
On Jun 23, the offeror revised its offer price upwards to S$0.25 per share after an independent financial adviser deemed its initial offer unfair.
The revised offer turned unconditional in all respects on Jul 7, after it received valid acceptances representing around 50.2 per cent of all CosmoSteel shares.
The counter closed unchanged at S$0.25 on Thursday.
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