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SINGAPORE – The founders of SK Jewelery Group have launched a voluntary conditional cash offer of 15 cents per share to delist and privatize the company, they announced in a stock presentation on Wednesday (September 2) ahead of the market opening of values.
The founders are Peter Lim Yong Guan, non-executive chairman of the company; his brother Daniel Lim Yong Sheng, CEO and CEO; and his sister Mary Lim Liang Eng, the group’s CEO and COO. Peter Lim is also a co-founder, CEO and CEO of the Moneymax Financial Services pawn shop.
Shares of SK Jewelery rose 5.3 cents or 55.8 percent to 14.8 cents as of 3:27 p.m. Wednesday, after a suspension of operations was lifted following the announcement of the offering. The shares had gained 8 percent to 9.5 cents on Aug. 28, before a ceasefire was called at 4 p.m. that day.
At 15 cents a share, the offer price stands at a premium of 70.5 percent over the share’s closing price of 8.8 cents on August 27, your last full trading day, and 94, 8 percent above the three-month volume-weighted average price. It also beats the highest closing price of the stock in more than two years.
The family business grew from a 700-square-foot store in Bedok Central in 1991 to a chain of more than 60 stores in Singapore and Malaysia. The group is made up of the brands Soo Kee Jewelery, SK Jewelery and Love & Co.
When the company listed on the Catalist junior board of directors of the Singapore Stock Exchange in 2015 at 30 cents a share, its market value was $ 168 million. The purchase offer values the company at $ 84 million.
The Lim brothers said that privatizing the company will provide them with greater control and management flexibility to respond to changing market conditions and optimize the use of the company’s resources.
They intend to continue developing and growing SK Jewelery’s existing businesses, with no current intentions to make major business changes or lay off employees.
The Lim brothers and their company, Soo Kee Capital, own 82.61 percent of SK Jewelery shares and have agreed to accept the offer. But the offer is still conditioned on receiving valid acceptances of 90 percent or more.
The offer, which is final, provides the company’s shareholders the opportunity to collect at a premium over historical market prices without incurring brokerage and negotiation costs amid the uncertainties surrounding the long-term impact of the pandemic. Covid-19 and a challenging outlook across the company’s business in Singapore, Malaysia, Thailand and China, the presentation said.
The offering is made through Lims’ investment holding company OroGreen Investment, with DBS Bank acting as its sole financial advisor.
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