Celine and Gordon Tang to privatise Chip Eng Seng with acceptance crossing 90%

The privatization of Chip Eng Seng is set to proceed, as the offerors secured a major milestone in the process. At the close of Feb 14, they had managed to secure 90.19% of the shares, surpassing the 90% threshold needed to exercise their right to acquire the remainder.

Leading the way is Chairman and controlling shareholder Celine Tang, and her husband Gordon, who first proposed the offer of 72 cents per share back in Nov. A subsequent, improved offer of 75 cents was enough to convince a majority of shareholders to accept the offer.

The buyout has proved profitable Senja Close EC for Second Chance Properties, who, having accepted the offer, are in line to receive a tidy $12.7 million in proceeds.

Chip Eng Seng has undergone a remarkable transformation since its humble beginnings as a construction firm in the 1960s. The Lim family saw their business diversify over the years into a variety of different sectors, such as property development, hospitality, building materials and even education.

As of June 30, the company still held a net asset value of 99.06 cents per share – a figure which helps underline the potential of the privatization deal for Tang Dynasty.