Patec Pte. Ltd., through United Overseas Bank Limited (UOB), has announced the successful conclusion of its mandatory unconditional cash offer for Broadway Industrial Group Limited. This acquisition has propelled Patec’s total shareholding to a commanding 93.05% of the company’s total issued shares, raising crucial implications for shareholders and the future of Broadway Industrial Group.

Key Developments and Timeline

The offer, which was first announced on 28 October 2024, became unconditional on 14 November 2024. Subsequent announcements revealed that the offer price was finalized without further increases, and shareholders were reminded of the closing deadline of 5:30 p.m. Singapore time on 23 December 2024. As of the closing date, the offer is no longer open for acceptance, and any submissions post-deadline will be rejected.

Shareholding Breakdown

As of the offer’s conclusion, Patec and its concerted parties collectively own and control 425,350,177 shares in Broadway Industrial Group. This represents an overwhelming 93.05% of the total issued shares (excluding treasury shares). Prior to the offer, Patec already held 43.09% of the company’s shares, with an additional 49.96% acquired through valid acceptances during the offer period.

Notably, no further shares were acquired by the Offeror or its concerted parties outside of the valid acceptances during the offer period.

Impact on Shareholders and Trading Status

This significant majority stake triggers several potential outcomes for Broadway Industrial Group:

• Loss of Free Float: With over 90% of shares consolidated under Patec’s control, the company no longer meets the minimum free float requirements for continued trading on the Singapore Exchange. This could result in a trading suspension.
• Compulsory Acquisition of Remaining Shares: Patec may invoke provisions under Section 215(3) of the Companies Act to compulsorily acquire the remaining shares from dissenting shareholders.
• Delisting Risks: The company’s listing status is now under scrutiny, and a delisting could follow if free float requirements are not restored.

Shareholders are urged to consider these developments carefully, as they may have a significant impact on the liquidity and valuation of their holdings.

Directors’ Statement

The directors of Patec have affirmed their commitment to ensuring the accuracy and transparency of all information provided. They have taken reasonable steps to verify data extracted from publicly available sources or Broadway Industrial Group itself. Shareholders are encouraged to reach out to UOB for further inquiries via their helpline at +65 6539 7066 during office hours.

Forward-Looking Statements

While Patec’s acquisition indicates a strategic push for control, the company has cautioned stakeholders about potential risks and uncertainties inherent in forward-looking statements. Shareholders should remain vigilant and avoid placing undue reliance on such projections.