Boustead Singapore makes 90 cent per share privatisation offer for Boustead Projects

Boustead Singapore has launched an offer for all the outstanding shares in Boustead Projects that it does not own; the offer is voluntary and unconditional and set at 90 cents per share. The aim of Boustead Singapore is to privatise Boustead Projects and delist it from the Mainboard of SGX-ST. As of 6th February, Boustead Singapore directly held 171 million shares representing approximately 54.87% of the total Senja Close EC number of issued Boustead Projects shares.

The acquisition of these additional shares is in accordance with Boustead Singapore’s intentions, ongoing strategic reviews and their goal of streamlining their investments, businesses, operations and the corporate structure of the group.

The company stated that Boustead Projects’ engineering and construction (E&C) business has suffered a direct impact from the Covid-19 pandemic, with significantly lower profits than during the pre-pandemic period. Boustead Singapore believes that the proposed acquisition would allow them to focus on rebuilding their business and the E&C business as a private limited company, without the extra obligations that come with being a listed company on the Mainboard of the SGX-ST.

It is believed that the acquisition would reduce organisational complexity and allow for more focus on operations, ultimately allowing them to enhance shareholder value.

The offer provides shareholders with an opportunity to realise their investments at a premium to prevailing market prices, with a premium of 7.8% over the last traded price per share as of 3rd February, and a premium of 15.2% over the volume-weighted average price of the shares for the one-month period prior to and including the announcement date. On 6th February, Boustead Projects shares closed 0.5 cents higher at 84 cents.

Overall, Boustead Singapore’s offer provides a beneficial and cost-effective opportunity to shareholders that may result in increased shareholder value.