Privatisation of the company is expected to provide greater operational flexibility to the group.
Tee International’s Chief Executive and Managing Director Phua Chian Kin has offered to take the company private through a scheme of arrangement.
With the offer made via Oscar Investment, Tee shareholders under the proposed scheme may opt to receive a cash consideration of 21.5 Singapore cents, or one new share in Oscar for every share held.
Tee International noted that the offer price represents a 12 percent and 9.1 percent premium to the three-month and six-month volume-weighted average price respectively, including the last market day.
Aside from Phua’s 56.19 percent interest in the company, Oscar has secured undertakings from other shareholders, taking its combined stake in Tee to 69.58 percent. These shareholders have agreed to support the scheme and receive shares in Oscar instead of cash.
Notably, the scheme is subject to approval from at least 75 percent of the company’s shareholders.
Once the scheme is approved, Phua will delist the company from SGX.
He believes that the “acquisition and the privatisation of the company would provide greater operational flexibility to the group”.
Meanwhile, Tee revealed that the scheme document containing full details of the scheme (including the formal opinion of the IFA and the recommendation of the non-interested directors) and notice of the scheme meeting will be dispatched to shareholders in due course.