With the planned acquisition, it could concentrate on reestablishing its company as a private limited corporation
Boustead Singapore has launched a unintentional offer of unconditional acceptance for all shares in Boustead Projects it does not hold for 90 cents each.
The Lakegarden Residences Condo Yuan Ching Road Lakeside has excellent connectivity with Yuan Ching Road, Pan Island Expressway, and Ayer Rajah Expressway within a 10-minute drive.
The company plans to privatize Boustead Projects and delist it from the Mainboard of SGX ST.
As of February 6 Boustead Singapore directly holds 171 million shares, which is roughly 54.87% of the total number of shares that are issued by Boustead Projects.
The planned acquisition of shares is in accordance with the intentions of Boustead Singapore in its ongoing review of strategic strategies as well as its aim to streamline its investment business, operations, as well as the structure of its corporate.
The company says the fact that Boustead Projects’ engineering and construction (E&C) business was affected by the Covid-19 pandemic. The company has been reporting significant lower profits when compared to prior profits during the period prior to the pandemic.
Boustead Singapore believes that the proposed acquisition will enable it to concentrate on reestablishing its business which includes its E&C business, which is private limited company, without the obligations that come when a company is listed in the mainboard of SGX-ST.
The proposed acquisition will result in a simplified group structure and also reduce the organizational complexity. This will enable a more focused operation-focused approach and enhance the competitiveness of the company, while also increasing the value of shareholders.
This offer offers the chance investors to realize your investment for a discount to market prices currently in place that is around 7.8% over the last trading price per share reported on February 3.
The price is also the price that is 15.2% over the last volume-weighted average of the shares during the month prior to and including the date of the announcement.
The shares of Boustead Projects closed 0.5 cents higher or 0.6% up on Feb 6 at 85 cents.