SINGAPORE (May 14): Memtech International has received an offer by M-Universe to privatise and delist at $1.35 per share.
M-Universe is the bid vehicle for a consortium formed by Memtech’s executive chairman Chuang Wen Fu and his family; Keytech Investment, an investment holding company that the Chuang Family holds interest in; and Universal Global Technology.
The offer price represents a premium of 23.9% over the May 10 close of $1.09, before the group called for a trading halt.
This offer price is final and M-Universe does not intend to revise the offer price, as it believes that the offer presents shareholders with a unique cash exit opportunity to realise their entire investments at an attractive premium over prevailing trading prices, without incurring brokerage and other trading costs. Furthermore, the low trading liquidity of the Memtech shares may not provide shareholders with sufficient opportunity to efficiently exit their investments in Memtech.
The offer will be conditional on M-Universe having received valid acceptances (which have not been withdrawn) in respect of such number of shares that will result in the offeror, its related corporations or their respective nominees holding not less than 90% of the shares at the close of the offer. The offeror reserves the right to reduce the acceptance condition to a level which is more than 50% of the total number of shares.
M-Universe has secured irrevocable undertakings of 57.77% of the total number of shares, from Chuang and his family, certain key management of the company as well as Keytech.
OCBC is the financial adviser to M-Universe for this offer.
