SINGAPORE (May 6): Environmental services provider 800 Super Holdings has received a 90 cents per share cash offer from 8S Capital Holdings with the intention to delist.
8S Capital is wholly owned by American investment firm Kohlberg Kravis Roberts & Co (KKR).
The deal will be funded by KKR with a combination of debt and structured financing to 8S Capital, primarily from pools of capital including KKR’s Private Credit Opportunities II fund and proprietary investment vehicles.
Based on 800 Super’s closing price on April 26, the offer price represents a premium of 30.6% to the group’s one-month volume weighted average price (VWAP).
8S Capital does not intend to increase the offer price.
In a Monday premarket filing, the offeror says 800 Super’s majority owners Lee Koh Yong and five of his siblings, who own some 77.6% of the group, have provided irrevocable undertakings to accept the offer and roll all of their shares into 8S Capital by subscribing for all of the shares in it.
8S Capital is required to receive no less than 90% of the total issued shares, or 12.4% more of shares in 800 Super, by the close of the offer for it to delist the company.
Lee, a director of 8S Capital and the executive chairman of 800 Super, says privatising the latter company will enable it to save on expenses to maintain its listed status, thus allowing it to focus on operational matters amid the competitive business landscape.
See: 800 Super posts 25% drop in 2Q earnings to $1.9 mil on higher expenses
“The offer represents an opportunity for shareholders to realise their entire investment in the shares at a premium to historical trading prices. It also provides shareholders with a means for a clean cash exit that would otherwise not be available given the low trading liquidity of the shares,” he adds.
“Our family welcomes the financing solution provided by KKR. The innovative structure of the deal enables us to continue owning the Company and we look forward to go on working with the Company’s existing management team and employees in partnership with KKR,” says Lee Cheng Chye, who is the CEO of 800 Super as well as part of the Lee family.
Shares in 800 Super closed flat at 81 cents on April 26 before its trading halt.
