Billionaire Tang couple make 72 cents per share cash offer to privatise Chip Eng Seng

2 weeks ago 26

SINGAPORE - Chip Eng Seng chairman Celine Tang and her husband Gordon Tang have made a voluntary conditional cash offer to acquire all the issued ordinary shares in the property firm at 72 cents apiece, with the end goal of taking the company private should they attain more than 90 per cent of shares.

The offeror is Tang Dynasty Treasure – an investment holding company owned by the Tang couple who also recently privatised SingHaiyi Group at a significant discount to its net asset value. SingHaiyi was delisted from the Singapore Exchange on Jan 31.

In an announcement on Thursday night, Chip Eng Seng said the offer price represents a year-to-date return of some 80.5 per cent, and a premium of about 36.9 per cent over the volume weighted average price (VWAP) of the company’s shares for the 12-month period prior to and including the holding announcement date of Sept 7.

The premiums of the consideration over the VWAP for the one-month, three-month and six-month period stands at 8.6 per cent, 21.4 per cent and 28.3 per cent respectively, the company said.

However, the offer translates to a discount of 27.3 per cent when compared to Chip Eng Seng’s group net asset value of S$0.9906 as at June 30.

The Tang couple jointly own just shy of 290.7 million shares of Chip Eng Seng. Gordon Tang also personally owns 9.1 million shares. This means the duo hold about 38.23 per cent of Chip Eng Seng’s total shares.

Senz Holdings, a company owned by Gordon Tang’s mother Yang Chanzhen and the Tang couple’s son Tang Jialin, holds a 3.22 per cent stake in Chip Eng Seng.

Chip Eng Seng said the offer gives shareholders an opportunity to realise their investments “at a premium without incurring brokerage frees”.

The offeror also said the move will “strengthen competitiveness and optimise resources”. It noted that SingHaiyi and Chip Eng Seng had entered into “numerous joint ventures” to leverage on the collective experience and expertise to deliver superior products to consumers.

“Due to rising interest and inflation rates, the ongoing Covid-19 pandemic a...

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