Boustead Singapore makes 90 cent per share privatisation offer for Boustead Projects

Boustead Singapore has recently put forth a voluntary unconditional offer of 90 cents per share to acquire any shares of Boustead Projects that it does not own. The company is looking to privatise Boustead Projects and delist it from the main board of the SGX-ST. As of February 6th, Boustead Singapore holds a 54.87% direct stake in the number of issued shares of Boustead Projects with a total of 171 million shares.

The proposed acquisition of the remaining shares is part of Boustead Singapore’s strategic reviews and objectives, aiming to Tengah Plantation EC simplify its investments, businesses, and corporate structure of the group. The company’s engineering and construction (E&C) business unfortunately has been greatly impacted by the COVID-19 pandemic, reporting a far lower profit margin than prior to the pandemic period.

Boustead Singapore believes that the proposed acquisition will allow them to refocus their business, including the E&C business as a private limited company, free from the obligations and costs associated with being a publicly listed company. In addition, it will allow for a simplification of the group’s overall structure, reducing organizational complexity and enabling Boustead to focus on operations and increase shareholder value.

This offer presents shareholders an opportunity to realize their investment at a premium higher than the prevailing market prices, offering a 7.8% premium over the last traded share price on February 3rd and a 15.2% premium over the last volume-weighted average price of the shares for the one-month period prior to and including the announcement date.

Boustead Projects’ shares closed 0.5 cents higher or 0.6% up on February 6th at 84 cents.