Catalist-listed Silkroad Nickel has received a privatisation bid that will value the company at $109.7 million. The offer is also made with a view to delist and privatise the company.
According to an Aug 29 filing, Horowitz Capital, an investment holding company, plans to make a voluntary conditional general offer of 42 cents per share for all the issued ordinary shares in Silkroad Nickel it does not already own. Shareholders of Silkroad Nickel may accept the consideration in cash or one new ordinary share in the capital of the offeror in lieu of the cash consideration.
The offer price represents a premium of approximately 2.4% over the last transacted share price of 41 cents on Aug 22, which is the last full day on which the shares were traded on the SGX.
The offer price also represents a premium of approximately 4.7%, 5.0%, and 1.9% over the volume weighted average price (VWAP) per share for the one-month, three-month and 24-month periods prior to and including the last trading day of Aug 22 respectively.
According to Horowitz Capital, the cash consideration represents a “clean cash exit opportunity” for shareholders who may find it difficult to exit their investment due to the low trading volume. The consideration is also a good time for shareholders to realise their investment without incurring brokerage and other trading costs.
The delisting and privatisation of the company will also provide Horowitz Capital with “greater control and management flexibility” in utilising and deploying the available resources of the company.
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In addition, the company will be continuing its business activities following the takeover. There are currently no plans to introduce any major changes to its business.
Horowitz Capital, which was incorporated in February, has three directors on its board. They are: Silkroad Nickel’s CEO and executive director Hong Kah Ing, executive director Syed Abdel Nasser Bin Syed Hassan Aljunied (Nasser Aljunied) and Rockstead Capital Group’s CEO Lester Tay Lee Chye.
As at Aug 29, Horowitz Capital has an issued and paid-up share capital of $2 comprising two offeror shares, all of which are held by Aljunied.
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Hong and Aljunied are each deemed to be interested in the 162.3 million shares, or a 62.1% stake, in Silkroad Nickel that’s held by Silkroad Nickel’s major shareholder, Far East Mining (FEM).
Shares in Silkroad Nickel last traded at 41 cents.
