Samko Timber Limited Faces Takeover: What Retail Shareholders Need to Know About the Mandatory Cash Offer

Key Points from the Takeover Offer

• Offer Price: S\$0.0005237 per share for all outstanding shares in Samko Timber Limited.
• Offeror: Kingyue International Holding Pte. Ltd., acting through The Central Depository (Pte) Limited (CDP).
• Offer Type: Mandatory unconditional cash offer; the Offer will NOT be extended beyond the closing date.
• Closing Date: 5:30pm on 9 September 2025. Shareholders must act before this deadline or risk missing the offer.
• Acceptance Methods: Shareholders can accept the offer either electronically via investors.sgx.com (for individual and joint-alt account holders) or by submitting a physical Form of Acceptance and Authorisation (FAA) to CDP.
• Irrevocability: Once you accept the offer, it is irrevocable except as specifically provided for in the Offer Document and/or the Code.
• Settlement: Payment will be made within seven (7) business days of valid acceptance, directly to your bank account via CDP’s Direct Crediting Service (DCS), or to your Cash Ledger if you are not on DCS.

Critical Considerations for Shareholders

• Price Sensitivity: The offer price of S\$0.0005237 per share is extremely low. Shareholders need to carefully consider whether to accept, as this price may not reflect the intrinsic value or future potential of Samko Timber Limited.
• Deadline is Final: The offer will NOT be extended past 5.30pm on 9 September 2025. If the acceptance is not submitted by then, shareholders will not be able to participate in the offer.
• Form Completion: Incorrectly or incompletely filled acceptance forms will be rejected with no recourse. Shareholders must ensure all required information is provided accurately and all supporting documents are included.
• Shares Bought on SGX-ST: If you recently purchased shares, ensure that your “Free Balance” in your Securities Account is credited before the deadline. If the settlement is not completed in time, your acceptance may be rejected.
• Overseas Shareholders: Acceptance of the offer may be affected by local laws. Overseas shareholders are urged to review the “Overseas Shareholders” section in the Offer Document and seek professional advice if needed.
• Deceased Holders or CPF Accounts: Special procedures apply for deceased account holders and shares bought with CPF. Personal representatives and CPF investors must follow instructions carefully to ensure valid acceptance.
• No Existing CDP Account: If you do not have a Securities Account in your own name, your acceptance will be rejected.
• Transfer of Shares: Upon acceptance, shares will be moved from your “Free Balance” to a “Blocked Balance” in your Securities Account until payment is made.
• Warranties and Authorisations: By accepting, you warrant your shares are fully paid and free of encumbrances, and you irrevocably authorise CDP to transfer them upon settlement.
• No Acknowledgment for Submissions: CDP will not acknowledge receipt of submissions. All communications and payments will be sent by ordinary post or via DCS, at the shareholder’s risk.

Potential Impact on Share Value

This mandatory cash offer is a significant corporate event which could impact Samko Timber Limited’s share price in the near term. The offer price, being substantially lower than typical trading prices for listed companies, may either anchor the stock price or trigger volatility as investors weigh the likelihood of acceptance and the future prospects of the company.

If a large proportion of shareholders accept the offer, the company could face privatisation or a change in control, which may further affect both the liquidity and valuation of remaining shares. Retail investors should closely monitor announcements and consider their options carefully, including seeking professional advice if uncertain.

What Shareholders Should Do Next

1. Review the Offer Document and all instructions in detail.
2. Decide whether to accept the offer at S\$0.0005237 per share by the deadline.
3. Submit your acceptance either electronically or by post, ensuring all details are correct.
4. Contact CDP customer service (+65 6535 7511) or visit www.sgx.com/cdp for FAQs or if you have any questions.
5. Take note of special procedures if your shares are held via CPF, joint accounts, or are part of a deceased estate.

Disclaimer

This article is for informational purposes only and does not constitute financial advice or a recommendation to take any action in relation to Samko Timber Limited shares. Investors are strongly encouraged to consult their stockbroker, bank manager, solicitor, accountant, tax adviser or other professional adviser if in doubt about the action to be taken. The author and publisher accept no liability for any losses incurred as a result of reliance on the information provided herein.

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