SINGAPORE – Shares of developer SingHaiyi Group shot up on Wednesday (Nov 10) following a privatisation offer from billionaire Gordan Tang and his wife Celine.
The stock closed up almost 10 per cent to 11.8 cents – its highest since February 2017 – with 58 million shares changing hands.
The Tangs, who together with their concert parties hold 78.37 per cent of SingHaiyi, are offering to buy the company at 11.7 cents a share in cash. This represents a premium of 8.3 per cent over Monday’s closing price and a 19.4 per cent premium over its 12-month volume weighted average price.
However, the offer is at a 21.8 per cent discount to the company’s net asset value per share of 14.96 cents as at Sept 30.
The Tangs need to sew up at least 90 per cent of the company’s shares by the close of the deal for the buyout to succeed.
Mr Tang, who is on the Forbes Singapore’s 50 richest 2021 list with an estimated fortune of $1.09 billion, also has investments in Singapore-listed Suntec Reit, OKH Global and OUE Commercial.
The offer document states that delisting the company will provide “more flexibility to manage the business, optimise the use of its management and resources and facilitate the implementation of any operational change”.
It added that it also gives shareholders an opportunity to exit the market during a period of low trading liquidity and realise their investments at a premium .
SingHaiyi reported on Tuesday that net profit for the half-year ended Sept 30 came in at $12.5 million, reversing from a loss of $4.6 million in the corresponding period a year earlier. Revenue surged from $50.5 million to $202 million.
The company develops mostly residential property in Singapore and the United States. It also has property investments in Australia and Malaysia.
Its completed projects here include 9 Penang Road, Charlton Residences, The Vales, City Suites, Pasir Ris One and CityLife @ Tampines. Ongoing projects include The Gazania, The Lilium and Parc Clematis.
SingHaiyi’s results statement noted that Parc Clematis, its first mega private residential project and largest development to date, “continued its strong performance, consistently in the monthly top 10 best-selling private residential projects since its launch”.
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