Takeover Bid for Sin Heng Heavy Machinery: Shareholders Offered Premium Price

Key Points:
TAL United Pte. Ltd. has made a voluntary unconditional cash offer to acquire all issued and paid-up ordinary shares of Sin Heng Heavy Machinery Limited at S$0.58 per share.
The offer price represents a premium of approximately 6.4% over the last transacted price and 5.8% to 19.3% over the volume-weighted average prices for various periods up to the last trading day.
The Offeror intends to privatize and delist the company, which would provide greater management flexibility and allow the company to focus on its businesses without the burdens of maintaining a public listing.
Shareholders holding approximately 58.51% of the total shares have provided irrevocable undertakings to accept the offer.
The Offeror reserves the right to exercise its right of compulsory acquisition if it receives valid acceptances for at least 90% of the total shares.
Potential Impact on Share Price: The offer price represents a significant premium over the recent trading prices of Sin Heng Heavy Machinery’s shares, which could lead to a positive market reaction and an increase in the company’s share price. The high level of irrevocable undertakings from major shareholders also suggests a high likelihood of the offer being successful, further supporting the share price.
Disclaimer: This article is for informational purposes only and does not constitute a recommendation or solicitation to buy or sell any securities. Investors should conduct their own due diligence and seek independent financial advice before making any investment decisions.

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