Tangs offer to privatise SingHaiyi Group at 11.7 cents per share

By The Edge Singapore / theedgesingapore.com | November 10, 2021 10:28 AM SGT
Celine Tang (Credit: Samuel Isaac Chua of The Edge Singapore)
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SINGAPORE (EDGEPROP) - Gordon and Celine Tang, the couple controlling developer SingHaiyi, is making an offer to privatise the developer, offering 11.7 cents per share for the 21.63% of the company they don't already own.
The offer price is a premium of 8.3% over the last traded price of 10.8 cents as of Nov 8, and values the company at around $498 million.
As at Sept 30, the company’s net asset value per share was 14.96 cents, versus 14.67 cents per share as at March 30.
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Separately, shares of OKH Global, a separately listed industrial and logistics property company that is 44.3% held by the Tangs, jumped 38.1% to close 2.9 cents after news of the offer for SingHaiyi was out.
The Tangs and their concerted parties already control 78.37% of SingHaiyi and they hope to privatise the company and enjoy more flexibility in managing this business. As a private company, there’s also no compliance and listing costs to be incurred.
According to UOB, which is advising the Tangs, the offer is an opportunity for shareholders to realise their investment at a premium without incurring brokerage fees.
The offer is also a chance for other shareholders to cash out from this stock which typically has low liquidity.
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For 1HFY2021 ended Sept 30, the company reported earnings of $12.5 million, a turnaround from a loss of $4.6 million in the year earlier. Revenue in the same period surged from $50.6 million to $202.8 million.
On Aug 19, the Tangs bought 233.2 million shares for $21 million in a married deal. The transaction works out to an average of 9 cents each. On July 5, SingHaiyi shares spiked more than 40%, drawing a query from SGX.
Besides SingHaiyi and OKH Global, the couple controls another listed company: Chip Eng Seng Corp.
On Oct 11, Celine paid 42 cents each to buy 231,000 shares from the open market, raising her stake to more than 290.9 million, or 37.13%.
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