The property investment company' s voluntary conditional cash offer closed on Tuesday, with the offeror Superior Partners and concert parties holding 95 per cent of total issued shares.

 

The remaining shares will be acquired via compulsory acquisition, with the relevant documentation having been despatched to dissenting shareholders on Nov 12.

 

As LCT no longer meets the requirement of a 10 per cent free float, trading in its shares will be suspended.

 

After completion of the compulsory acquisition, LCT will become a wholly-owned subsidiary of the offeror and be delisted, with the date and time of delisting to be announced in due course.

 

With an offer price of S$0.60 per share and over 35 million issued shares, the cash offer valued the company at about S$21 million.

 

In the offer document, the offeror had said that delisting will give LCT greater control and flexibility to respond to any changes in the " uncertain economic environment" resulting from Covid-19, and achieve " greater efficiency and competitiveness" .

 

DU Junhong, a co-founder of mainboard-listed LCT Holdings, has offered to take the company private in a move that values it at some S$21 million.

 

Through investment vehicle Superior Partners Limited, Dr Du on Wednesday made a voluntary conditional cash offer to acquire all the ordinary shares in LCT at S$0.60 per share. There are more than 35 million issued shares.

 

Dr Du does not hold any shares but has a 19.72 per cent deemed interest through his holdings in Longdu Investment Limited, Longpartner Investment Limited and Triple Bonus Investment Pte Limited.

 

He and LCT' s other co-founders have undertaken to accept the offer. They hold a 27.65 per cent interest combined.

 

The offeror said that delisting LCT will give the company greater control and flexibility to respond to any changes in an " uncertain economic environment" resulting from Covid-19 and achieve " greater efficiency and competitiveness" .

 

For now, the offeror said, it does not intend to introduce any major changes to the business, dismiss existing employees or " re-deploy" the company' s fixed assets. But it retains the flexibility at any time to " consider options or opportunities which may present themselves" .

 

According to the bourse filing on Wednesday, Dr Du does not intend to revise the offer price or any other terms of the deal, but will reserve the right to do so " if a competitive situation arises" .

 

The offer price represents a roughly 39.53 per cent premium over the closing price of shares in LCT when they last traded on Sept 9. It also represents a roughly 60.86 per cent, 61.73 per cent, 61.29 per cent and 25.26 per cent premium above the volume weighted average price per share for the one-month, three-month, six-month and 12-month period prior to and including Sept 9.