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09-10-2018, 10:17 AM
HOT STOCK
Chip Eng Seng shares tumble 10% with no mandatory offer in sight
Counter down S$0.095 to S$0.85; SingHaiyi's Celine Tang bought 29.73% stake, just short of the threshold for a mandatory offer
TUE, OCT 09, 2018 - 5:50 AM
MARISSA LEEmarilee@sph.com.sg@MarissaLeeBT
Buy the rumour
Singapore
CHIP ENG SENG shares crashed 10 per cent on Monday as punters wagering on a takeover offer were wrong-footed, when the buyer of the controlling Lim family's 29.73 per cent stake avoided the 30-per cent threshold that would have triggered a mandatory takeover offer.
SingHaiyi managing director Celine Tang forked out S$201 million to become Chip Eng Seng's single largest shareholder on Monday, through married deals with seven shareholders including founder Lim Tiam Seng that were done at S$1.08 per share, a premium to the market price. The bulk of the purchase - comprising a 26.98 per cent stake - was made jointly with her husband Gordon Tang. Separately, Ms Tang holds a deemed interest of 2.75 per cent.
By keeping her ownership below 30 per cent, Ms Tang is not required to make a mandatory offer for the rest of Chip Eng Seng at the same price that the insiders were bought out.
Chip Eng Seng shares gapped down at the open and finished the day 9.5 Singapore cents lower at S$0.85 on a turnover of 197.6 million. Married deals accounted for 186.1 million shares traded.
The counter had surged 13.2 per cent last week before trading was halted last Friday and Ms Tang's purchase announced.
In response to queries from The Business Times, a spokesperson for Ms Tang emphasised that her purchase was made "entirely in Ms Celine Tang's personal capacity".
"As such, it is irrelevant for SingHaiyi to comment on this private transaction." Ms Tang declined to comment on whether she intends to make a general offer for Chip Eng Seng.
Separately, Chip Eng Seng chief executive Raymond Chia told BT that he will continue to run the property and construction company as chief executive.
Mr Chia said: "I'm not able to comment (on the change in ownership) because it was a family decision... Very soon we will have to convene a board meeting, from there there will be some minor changes."
He declined to comment on talks with Ms Tang, noting only that "Chip Eng Seng is a good name" with a solid track record. Although his wife Lim Sock Joo sold some of her shares to Ms Tang, Mr Chia did not sell any. He still owns a 1.78 per cent direct interest in Chip Eng Seng.
Ms Tang and property group SingHaiyi are active players in the real estate scene.
SingHaiyi itself is the result of a 2013 takeover of the former SingXpress Land by Ms Tang and her husband.
In December, SingHaiyi took up a small stake in Australia-listed Cromwell Property Group.
In 2016, Ms Tang took the helm of property developer OKH Global, in which the Tangs had acquired a 44.3 per cent stake via the issuance of new shares at a discount to market price.
That deal took place after OKH shares suffered a sharp selldown in March 2016, when scrip pledged by its former executive chairman to certain banks were forcibly sold.
Source: Business Times
Chip Eng Seng shares tumble 10% with no mandatory offer in sight
Counter down S$0.095 to S$0.85; SingHaiyi's Celine Tang bought 29.73% stake, just short of the threshold for a mandatory offer
TUE, OCT 09, 2018 - 5:50 AM
MARISSA LEEmarilee@sph.com.sg@MarissaLeeBT
Buy the rumour
Singapore
CHIP ENG SENG shares crashed 10 per cent on Monday as punters wagering on a takeover offer were wrong-footed, when the buyer of the controlling Lim family's 29.73 per cent stake avoided the 30-per cent threshold that would have triggered a mandatory takeover offer.
SingHaiyi managing director Celine Tang forked out S$201 million to become Chip Eng Seng's single largest shareholder on Monday, through married deals with seven shareholders including founder Lim Tiam Seng that were done at S$1.08 per share, a premium to the market price. The bulk of the purchase - comprising a 26.98 per cent stake - was made jointly with her husband Gordon Tang. Separately, Ms Tang holds a deemed interest of 2.75 per cent.
By keeping her ownership below 30 per cent, Ms Tang is not required to make a mandatory offer for the rest of Chip Eng Seng at the same price that the insiders were bought out.
Chip Eng Seng shares gapped down at the open and finished the day 9.5 Singapore cents lower at S$0.85 on a turnover of 197.6 million. Married deals accounted for 186.1 million shares traded.
The counter had surged 13.2 per cent last week before trading was halted last Friday and Ms Tang's purchase announced.
In response to queries from The Business Times, a spokesperson for Ms Tang emphasised that her purchase was made "entirely in Ms Celine Tang's personal capacity".
"As such, it is irrelevant for SingHaiyi to comment on this private transaction." Ms Tang declined to comment on whether she intends to make a general offer for Chip Eng Seng.
Separately, Chip Eng Seng chief executive Raymond Chia told BT that he will continue to run the property and construction company as chief executive.
Mr Chia said: "I'm not able to comment (on the change in ownership) because it was a family decision... Very soon we will have to convene a board meeting, from there there will be some minor changes."
He declined to comment on talks with Ms Tang, noting only that "Chip Eng Seng is a good name" with a solid track record. Although his wife Lim Sock Joo sold some of her shares to Ms Tang, Mr Chia did not sell any. He still owns a 1.78 per cent direct interest in Chip Eng Seng.
Ms Tang and property group SingHaiyi are active players in the real estate scene.
SingHaiyi itself is the result of a 2013 takeover of the former SingXpress Land by Ms Tang and her husband.
In December, SingHaiyi took up a small stake in Australia-listed Cromwell Property Group.
In 2016, Ms Tang took the helm of property developer OKH Global, in which the Tangs had acquired a 44.3 per cent stake via the issuance of new shares at a discount to market price.
That deal took place after OKH shares suffered a sharp selldown in March 2016, when scrip pledged by its former executive chairman to certain banks were forcibly sold.
Source: Business Times