The domestic construction sector is expected to face higher material costs in 2022, largely from persistent supply chain bottlenecks, alongside rising energy prices due to geopolitical tensions, which have exacerbated global inflationary pressures, the announcement says.
On May 20, TTJ Holdings’ major shareholders via THC Venture has made a voluntary conditional offer (VCO) for the shares in TTJ it doesn’t own at $0.23 cents per share. Teo Hock Chwee owns 84.4% and his daughter 0.1% of TTJ. The announcement says THC Venture, the offeror, intents to privatise the company and does not intend to preserve the listing status of TTJ if it ends up holding more than 90%.
The rationale for the offer according to the preliminary May 20 announcement appears compelling. Shareholders can realise a premium over the market price without incurring brokerage costs. Based on TTJ’s 1HFY2022 announcement, (the company has a July year end) labour shortages are likely to persist in the short term and output of the construction sector is expected to remain below pre-pandemic levels throughout 2022.
