Offshore oil and gas equipment manufacturer Amos Group has received a voluntary unconditional general offer of 7 cents per share in cash from its controlling shareholder, PeakBayou.
It noted the low trading volume of the company’s shares on the Singapore Exchange, adding that the cash consideration provides shareholders an opportunity to liquidate and realise their investment at a premium to prevailing market prices.
PeakBayou is a private equity fund of Hong Kong-based firm ShawKwei & Partners, which is in turn majority-owned by Amos Group’s executive chairman, Kyle Arnold Shaw.
PeakBayou on Sept 25 said the offer price will be final as the offeror does not intend to increase it.
PeakBayou directly owns about 145.5 million shares in Amos representing 69.85 per cent of the issued capital in the company.
The offer will be extended to all issued shares owned by the offeror’s concert parties, as well as all new shares that were issued prior to the close of the offer under the Amos employee share option scheme.
It however excludes outstanding options under the scheme, which stand nearly 1.7 million as at the announcement date, and are considered personal as well as not transferable.
Amos supplies products, services, and solutions to marine and energy customers. It has been listed on the Singapore Exchange’s Mainboard since 2012.
The 7 cents per-share privatisation offer represents a premium of 32.1 per cent over Amos’ last traded price of 5.3 cents.
PeakBayou said its offer therefore represents a “clean cash exit opportunity” for Amos shareholders to realise their investment without incurring brokerage and other trading costs.
Such an option may not otherwise be readily available due to the low trading liquidity of Amos’ shares, added the offerer.
Citing a challenging environment for Amos’ business, PeakBayou said delisting