MAINBOARD-LISTED builder Lian Beng' s controlling Ong family held an interest of 68.3 per cent at the end of a mandatory cash offer on Monday, it has disclosed.

 

Offeror Ong Sek Chong & Sons had in June launched an offer at S$0.50 a share, in a move that valued Lian Beng at more than S$267.5 million, after a married deal.

 

The offer turned unconditional about three weeks later, as the offeror secured acceptances that took its shareholding above the 50 per cent mark.

 

With the end of the exercise, no further acceptances can be made, and any acceptances received after this date will be rejected, UOB noted on behalf of the offeror.

 

The offeror earlier stated that it plans to maintain Lian Beng' s listing status, and has confirmed it is not required to make an offer for Lian Beng-linked SLB Development.

 

The offer vehicle is controlled by Lian Beng chairman and managing director Ong Pang Aik executive directors Ong Lay Huan and Ong Lay Koon and group purchasing director Ong Lee Yap.

 

On July 5, United Overseas Bank, on behalf of the major shareholders of Lian Beng Group, announced the offer to privatise the company at 50 cents had gone unconditional - that is the founding Ong family and friendly parties hold more than 50%. However, the announcement reiterates that the offer closes at 5.30pm on July 26, with no extension of the closing date.

 

The privatisation offer shines a spotlight on the vast difference between the offer price of 50 cents per share relative to Lian Beng&rsquo s net asset value of 145.58 cents. In addition, the company carries very a modest amount of debt, with a net debt to equity ratio of around 0.47.   

  40 per cent of the 100,000 ordinary shares are held by Lian Beng' s chairman and managing director Ong Pang Aik.

The Ong family controlling the Lian Beng civil engineering and construction group on Monday (June 14) announced a mandatory conditional cash offer at 50 cents per share, following a married deal.

 

The family had, through its investment holding company Ong Sek Chong & Sons, acquired nearly 5.9 million shares, or about 1.2 per cent of the total number of issued and paid-up ordinary shares issued by Lian Beng Group.

 

Prior to the market acquisition, Ong Sek Chong & Sons and its concert parties held about 43.6 per cent of voting rights in Lian Beng.

 

With its recent acquisition of more than 1 per cent of shares in Lian Beng, it was required to extend a mandatory offer.

 

The offer price represents a premium on the last traded price of 47 cents last Friday, the last trading day, the announcement said.

 

On Monday morning, shares of Lian Beng were trading at 48.5 cents, up 3.2 per cent or 1.5 cents, before the group called for a trading halt pending the release of the announcement.

 

Ong Sek Chong & Sons has an issued and paid-up share capital of $100,000 comprising 100,000 ordinary shares, of which 40 per cent are held by Mr Ong Pang Aik, chairman and managing director of Lian Beng 36 per cent by executive director Ong Lay Huan 12 per cent by Ms Ong Lay Koon, another executive director at Lian Beng and the remaining 12 per cent by Ms Ong Lee Yap.

 

The former three shareholders, along with Mr Ong Phang Hui and Mr Ong Phang Hoo, sit on Ong Sek Chong & Sons' board of directors.

 

The trading volume of Lian Beng' s shares has been generally low, the announcement said, with an average daily trading volume of 241,529 shares, or 0.05 per cent of total issued shares, in the one-month period up to and including the last full trading day prior to the announcement.

 

The Ongs intend to maintain Lian Beng' s listing status and do not intend to exercise any rights of compulsory acquisition.

 

Ong Sek Chong & Sons has confirmed with the Securities Industry Council of Singapore that it will not be required to make an offer for SLB Development, of which Lian Beng owns some 708.1 million, or about 77.6 per cent, of issued and paid-up ordinary shares.

 

It will not be making an offer for SLB Development in connection with the offer, which, if it becomes unconditional, will result in Ong Sek Chong & Sons acquiring statutory control and indirectly acquiring effective control of SLB Development.