The sole shareholder of the offeror is Euphoria Investments, a special purpose vehicle incorporated in the Cayman Islands, which is an indirect wholly owned subsidiary of a fund that is advised and managed by Southern Capital Group (SCG), a Singapore-headquartered private equity firm that focuses on investments into high growth middle market businesses across Southeast Asia. The members of the board of directors of the offeror are Low Yon Jan, Boh Sang Wei and Kenneth Tan Jhu Hwa, who are executives of SCG.
On Aug 15, at a meeting, RE&S’s shareholders were given a choice of voting for a scheme of arrangement to privatise the company or against the scheme. The major shareholders of RE&S who hold 84.1% of the shares in issue have given their irrevocable undertaking to vote for the scheme.
On May 19, shareholders of RE&S received an offer to privatise the company via a scheme of arrangement at a consideration of 36 cents per share. A scheme of arrangement requires 75% in value of shares of the shareholders present and voting at the scheme meeting to vote for the scheme and court approval. The reason why some offerors prefer a scheme of arrangement is that it provides certainty that the offeror receives 100% of the shares.
