Silver Lake Axis announced on Aug. 26 that it plans to go private through a takeover bid of 36 cents per share. The Edge Singapore.
The cash offer represents a 28.1% premium to the volume weighted average price (VWAP) for the one-month period ending August 23rd.
Additionally, the offer offers premiums of 25%, 31.9% and 31.9% on the 3-month, 6-month and 12-month VWAP respectively.
Shareholders Silver Lake Axis There is also an option to receive 30 cents in cash and one new redeemable preference share from the capital of the offeror, E2I Pte. Ltd.
These preferred shares will mature in five years at 18 cents per share, but E2I will not be listed on any stock exchange.
Founded on July 10, E2I is owned by Zezz FundQ Pte. Ltd., which is controlled by Goh Peng Ooi, chairman and founder of Silverlake Axis.
Mr Goh’s daughter, Siu Ling, and Mr Lawrence Ng Lip Chi also sit on E2I’s board of directors.
Zezz FundQ is Silverlake Axis’ largest shareholder, holding 74.07% of the company, and Goh also has a small direct investment in the company.
Silver Lake Axis said the rationale for the proposed acquisition was due to consistently low trading volumes, ranging from 435,309 shares to 947,576 shares traded on average per day over various time periods.
This represents less than 0.04% of the company’s total shares.
The privatisation is said to provide shareholders with a “clean cash exit opportunity” and reflects a valuation of 2.7 times the company’s net asset value of 13.5 cents per share.
Upon successful completion of the process, Silverlake Axis will be delisted, giving the company greater control over its resources and reducing compliance and human resource costs.
Silver Lake Axis reported a 39% year-on-year drop in profit to RM103.3 million for FY24, despite a slight 2% increase in sales.
Silver Lake Axis shares closed at 30 cents on August 23rd and trading was halted on the morning of August 26th.
According to the Business Times, stock Rapid increase Following the announcement, the Singapore dollar rose 23.3% to S$0.37 before depreciating to S$0.365.
