Green Esteel Declares HG Metal Takeover Offer Unconditional, Shareholders Must Act Before Deadline

In a significant development, Green Esteel Pte. Ltd. has officially declared its mandatory conditional general cash offer for HG Metal Manufacturing Limited to be unconditional in all respects. The announcement follows the firm securing over 50% of the total issued shares of HG Metal, thus meeting the Minimum Acceptance Condition outlined in its offer.

Key Developments in the Offer

The offer, which was initiated via an offer document dated January 6, 2025, pertains to all issued and paid-up ordinary shares in HG Metal except treasury shares and those already owned or controlled by Green Esteel and its concert parties. As of January 27, 2025, Green Esteel and its concert parties collectively control 143,704,027 shares, representing approximately 52.31% of HG Metal’s total issued shares.

This marks a critical milestone, as the Offeror has now surpassed the 50% threshold required to declare the offer unconditional. The announcement solidifies Green Esteel’s majority control over the company, a development that could significantly impact HG Metal’s future operations and strategic direction.

Important Details for Shareholders

Shareholders who wish to accept the offer must act promptly. The offer will remain open for acceptance until 5:30 p.m. (Singapore time) on February 3, 2025. Green Esteel has confirmed that there will be no further extensions to this deadline. Any acceptances received after the cut-off time will be rejected.

For shareholders who have already accepted the offer, no further action is required. Payment for valid acceptances will be made within seven business days following the date of the announcement or receipt of the acceptance, as applicable. Similarly, CPFIS and SRS investors must adhere to deadlines provided by their respective CPF or SRS agent banks, which may be earlier than the general closing date.

Price-Sensitive Information

The takeover bid’s progress and Green Esteel’s majority stake acquisition are likely to influence HG Metal’s share value. With the offer now unconditional, investors may anticipate potential shifts in the company’s governance, strategic priorities, and market position, all of which could impact its valuation. Furthermore, the deadline for acceptances introduces a time-sensitive dimension that shareholders must consider when making their decisions.

Overseas Shareholders

Green Esteel highlighted potential restrictions on sending offer-related documents to shareholders in certain overseas jurisdictions. Affected shareholders are advised to review Section 14 of the Offer Document for further details.

Forward-Looking Statements

The announcement also included a cautionary note regarding forward-looking statements. While Green Esteel has expressed confidence in the success of the transaction, it acknowledged that actual outcomes could vary due to inherent risks and uncertainties.

Final Thoughts

This development marks a pivotal moment in Green Esteel’s acquisition strategy for HG Metal. Shareholders who have yet to respond to the offer must act swiftly to meet the February 3 deadline, while those who have already accepted can expect payment shortly. With Green Esteel now holding a majority stake, the future direction of HG Metal could see significant changes in the coming months.

Disclaimer

This article is for informational purposes only and should not be construed as financial or investment advice. Readers are encouraged to consult with a financial advisor or conduct their own due diligence before making investment decisions. The author and publisher are not responsible for any actions taken based on the information provided in this article.

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