Mainboard-listed LHT Holdings has received an irrevocable offer from its managing director and CEO, Yap Mui Kee, to purchase the company&rsquo s assets and business.

 

The term sheet dated May 19 stated that Yap would like to buy all, or substantially all of the company&rsquo s operating assets and business undertakings as at the cut off date of March 31.

 

Yap is also LHT&rsquo s controlling shareholder. The company did not solicit the offer, says LHT in its May 20 announcement.

 

As at Dec 31, 2024, the company' s net asset value per share was 101.77 cents, slightly above LHT' s last traded price of 92 cents, giving it a market cap of nearly $49 million.

 

According to LHT' s annual report, as at March 11, Yap holds 18.45% of the shares.

 

The offer is valid till Aug 19 and is subject to LHT&rsquo s acceptance in writing. The term does not constitute any legally binding obligations or commitments from the company.

 

According to LHT, the board, except Yap and her alternate director, Sally Yap Mei Yen, is currently reviewing and considering the offer.

 

LHT Holdings is a manufacturer of wooden pallets, boxes and crates, flooring, furniture components and doors for both local and overseas markets. It also imports chip-moulded pallets, slip-sheet pallets and plastic pallets and provides industrial packing and supply packaging supports to its customers.

On Jan 23, LHT Holdings : BEI 0% managing director and CEO Yap Mui Kee acquired 34,500 shares at an average price of S$1.01 a share. With a consideration of S$35,014, this took her direct interest in the home-grown pallet manufacturer from 18.39 to 18.45 per cent. Yap has been increasing her direct interest in LHT from 14.12 per cent since August 2021.

 

On Jan 21, Lan Ruilong acquired 9,671,205 shares, representing an 18.16 per cent substantial shareholding in the company, from Tan Kim Sing through a married deal.

 

LHT Holdings, established in 1977, has been in the timber industry for more than 40 years, growing into one of Singapore&rsquo s largest manufacturers of high-quality wooden pallets, boxes and crates. It is scheduled to report its FY2024 results after the Feb 27 close.

On Jun 7, LHT Holdings : BEI -11.29% managing director Yap Mui Kee acquired 36,200 shares at an average price of S$1.21 a share. With a consideration of S$43,849, this took her direct interest in the home-grown pallet manufacturer from 18.20 to 18.26 per cent.

 

She has been increasing her direct interest in LHT from 14.12 per cent since August 2021.

Between May 24 and 30, LHT Holdings : BEI 0% managing director, Yap Mui Kee, acquired 113,700 shares at an average price of S$1.059 per share. With a consideration of S$120,450, this took her direct interest in the home-grown pallet manufacturer from 17.79 to 18 per cent.

 

Yap has gradually increased her direct interest in LHT Holdings from 14.12 per cent in August 2021.

LHT Holdings : BEI 0% managing director and CEO Yap Mui Kee continued to acquire more shares last week, adding 51,900 shares between May 2 and 9 at an average price of S$1.30 per share. This takes her direct interest in the home-grown pallet manufacturer from 17.27 per cent to 17.37 per cent.

 

This also follows on from her acquisitions of 291,600 shares in April. Yap has gradually increased her direct interest in LHT from 14.12 per cent in August 2021.

LHT Holdings

Between Apr 19 and 23, LHT Holdings : BEI 0% managing director Yap Mui Kee acquired 138,000 shares at an average price of S$1.186 per share. With a consideration of S$163,630, this took her direct interest in the homegrown pallet manufacturer from 16.92 per cent to 17.18 per cent. Yap has gradually increased her direct interest in LHT from 14.12 per cent in August 2021.

 

Since its establishment in 1977, LHT has grown into one of the largest manufacturers of high-quality wooden pallets, boxes and crates in Singapore, with facilities occupying 56,275 square metres in the country. Its staff strength now stands at 90 employees in Singapore and a total of 262 employees in the group as at end-February 2024. Apart from intensifying its marketing efforts this year, the group will continually review and further streamline its current operations, production processes and production bases, Yap says. She adds that the group will also continue to enhance its competitiveness by maintaining product quality, prompt delivery, cost controls and improvements in productivity and is confident that these efforts will enable it to deliver value and stay competitive.

Between Apr 17 and 18, LHT Holdings : BEI +1.75% managing director Yap Mui Kee acquired 103,800 shares at an average price of S$1.11 per share. With a consideration of S$114,836, this took her direct interest in the home-grown pallet manufacturer from 16.72 to 16.92 per cent.

 

Yap has gradually increased her direct interest in LHT Holdings from 14.12 per cent in August 2021. She has overseen the sales and marketing functions of the group for more than 35 years and is responsible for exploring new markets for the company, and aligning the company&rsquo s research and development efforts for new products based on market needs.

 

Yap also plays an active role in the group&rsquo s efficient consumer response (ECR) pallet rental business in Singapore and Malaysia, and oversees the development of the group&rsquo s radio frequency identification ECR pallet tracking system. Yap noted that the group&rsquo s achievements depend largely on its core business of manufacturing, sale and service of pallets and packaging cases. She added that the ability to increase market share while maintaining profit margin is key to the business.

On Mar 11, LHT Holdings : BEI -0.95% managing director, Yap Mui Kee, acquired 43,900 shares at an average price of S$1.05 per share. With a consideration of S$46,095, this took her direct interest in the homegrown pallet manufacturer from 16.64 to 16.72 per cent. Yap has gradually increased her direct interest in LHT Holdings from 14.12 per cent in August 2021. Her preceding acquisitions were back on Feb 26 with 61,000 shares acquired at the same price, and on Jan 11, 2024, with 1,400 shares acquired at S$0.865 per share and in October 2023, with 238,500 shares acquired at an average price of S$0.819 per share.

Between Oct 23 and 26, LHT Holdings : BEI -1.87% managing director, Yap Mui Kee, acquired 235,900 shares at an average price of S$0.819 per share.

 

With a consideration of S$193,123 this took her direct interest in the homegrown pallet manufacturer from 16.08 per cent to 16.52 per cent.

 

Yap has gradually increased her direct interest in LHT Holdings from 14.12 per cent in August 2021.

 

Her preceding acquisition was back on Oct 18, 2022, with 460,700 shares bought at S$0.70 per share.

 

LHT Holdings is one of the largest homegrown manufacturing companies of high quality and eco-friendly wooden pallets, boxes, and crates in Singapore.

 

Yap had been an executive director of the company since January 1988. She was appointed acting managing director in February 2016 and re-designated chairman, managing director, and CEO in February 2017.

 

She oversees the sales and marketing functions of the group for more than 35 years and is responsible for exploring new markets for the company and aligning its research and development efforts for new products based on market needs.

 

Yap plays an active role in the group&rsquo s efficient consumer response (ECR) pallet rental business in Singapore and Malaysia and oversees the development of the group&rsquo s radio frequency identification (RFID) ECR pallet tracking system.

 

Back on Aug 11, the group reported that its H1FY23 (ended Jun 30) attributable profit increased 7.9 per cent to S$2.58 million.

 

It noted that the sales of pallets and packaging business segment decreased by 9 per cent from H1FY22 to S$12.89 million due to saturated market conditions arising from increased competition and a reduction in market demand.

 

At the same time, the group was able to achieve a higher gross margin in H1FY23.

 

This was mainly due to intensified efforts in sourcing for cheaper raw materials and lower production cost as a result of the group&rsquo s effort to gradually relocate production facilities to Malaysia.

 

The group noted that going forward, apart from intensifying its marketing efforts, it will continually review and further streamline its current operations and production processes.