Best World raises exit offer price to S$2.56 per share in final offer

BEST World International : CGN 0% said on Friday (May 24) that it will raise its exit offer price to S$2.56 per share in cash, up from S$2.50 previously, and it does not intend to revise the final exit offer price.

The company said in a bourse filing that it decided to increase the exit offer price following a review of its most recent financial and cash position.

“The company is of the view that the final exit offer price reinforces the compelling exit opportunity for eligible shareholders, to realise their entire investment in cash at an attractive premium over historical traded prices of the shares up to the last undisturbed trading day amid low trading liquidity and ongoing market volatility, without incurring brokerage and other trading costs,” it said.

The final exit offer price is a premium to the historical trading price of the shares in the six months up to the last undisturbed trading day, which ranged from S$1.60 to S$1.83. It is also a premium to the adjusted net asset value per share of S$1.36.

Best World announced last month its exit offer by way of a selective capital reduction as it seeks to delist the company.

Some 150.1 million shares of eligible shareholders, excluding the company’s major shareholders who are involved with the business, will be cancelled, subject to these shareholders’ approval at an extraordinary general meeting and the High Court’s approval of the exit offer. This will reduce the company’s shares by about 34.9 per cent to 280.3 million.

“The company believes a privatisation of the company will provide the necessary flexibility to optimise its resources to focus on the longer-term strategies of the business,” it said in April.

Best World added that it has no present need for access to the Singapore capital markets and has not carried out any corporate exercise to raise cash funding on the SGX in the past 10 years.

Shares of Best World closed unchanged at S$2.50 on Friday, before the announcement.