SINGAPORE - Mainboard-listed Golden Energy and Resources (Gear) has come up with an improved all cash exit offer to shareholders in its privatisation bid.
Under the new terms, the exit offer is now 13 per cent higher at 18.1 cents.
Those opting for an all-cash payout will get an additional 79.2 cents representing the in-specie distribution of 1.3936 shares in Gear’s 62.5 per cent owned Indonesia-listed thermal coal producer Golden Energy Mines (Gems).
In total, the 97.3 cents all-cash offer is 15 per cent higher than its original total offering of 84.6 cents.
However, those opting for Gems shares-plus-cash will have to settle for 96.4 cents in total value, some 7.8 per cent lower than the original offer of $1.045. The company said this was on account of the fall in Gems share price and the appreciation of the Singapore dollar against the Indonesian rupiah.
Retail shareholders in Singapore are most likely to opt for the all-cash offering.
This is a premium of approximately 23 per cent, 44.6 per cent, 48.3 per cent and 63.8 per cent over the volume weighted average price (VWAP) of Gear’s shares for the one-month period, three-month period, six-month period and 12-month period respectively. It is also higher than the price of the stock on its last day of trading on October 7, 2022 and when the company announced its acquisition three days later.
And while the Gems-plus-cash offer is a 7.8 per cent lower than the original offer price, it is still a premium of approximately 21.9 per cent, 43.2 per cent, 47 per cent and 62.3 per cent over the VWAP for the one month period, three-month period, six-month period and 12-month period respectively, and including the last trading day of the stock.