CosmoSteel Holdings Set for Delisting After Compulsory Acquisition: What Investors Need to Know

Key Highlights from the Latest Announcement

• Voluntary Unconditional Cash Offer: 3HA Capital Private Limited, via Evolve Capital Advisory, has made a voluntary unconditional cash offer for all issued shares of CosmoSteel Holdings Limited.
• Compulsory Acquisition Underway: Following the offer, 3HA Capital intends to exercise its right of compulsory acquisition under Section 215(1) of the Companies Act, which will result in CosmoSteel becoming a wholly-owned subsidiary of the Offeror.
• Trading Suspension & Loss of Free Float: The trading of CosmoSteel shares on SGX-ST was suspended after the close of the offer. The company no longer satisfies the SGX’s free float requirement (minimum public shareholding), a key trigger for delisting.
• No Intention to Restore Public Float: The Offeror explicitly stated it has no intention to restore the public float for CosmoSteel shares, closing the door for a re-listing or reversal.
• Delisting Application: The Board has formally applied to SGX-ST for approval to delist CosmoSteel from the exchange, pursuant to Rule 1308(1)(b) of the Listing Manual, after completion of the compulsory acquisition.
• Further Announcements Pending: The company will update shareholders on the outcome of the delisting application in due course.

Important Details for Shareholders

• Shareholders Who Have Not Tendered: If you have not accepted the offer, your shares will likely be acquired compulsorily at the final offer price. Watch for documents from the Offeror regarding the process.
• Trading Halt: Shares have been suspended from trading effective 4 August 2025. This means you cannot sell your shares on the open market.
• Final Offer Price: Details of the final offer price and any revisions were disclosed in the Offer Document and subsequent announcements. If you have not accepted the offer, your shares will be acquired at this price.
• End of Public Listing: After the compulsory acquisition and delisting, CosmoSteel will cease to be a publicly traded company. Shareholders will not have liquidity in the shares and will no longer have rights as public shareholders.
• Potential Price Sensitivity: The announcement confirms the end of public trading and liquidity for CosmoSteel shares. If you are still holding shares, your only option will be the compulsory acquisition at the offer price, with no prospect of future trading gains.
• Directors’ Statement: The Board assures shareholders that they have taken reasonable steps to ensure the accuracy of the information, but shareholders should refer to official documents for final terms and procedures.

Why This News Is Price Sensitive

This series of announcements marks the final phase of CosmoSteel Holdings as a listed entity. For retail shareholders, the loss of free float, trading suspension, and impending compulsory acquisition mean that the share price is now effectively set by the final offer price. There is no possibility for market-driven price movements from this point onward. The delisting and compulsory acquisition are highly price sensitive events for anyone still holding shares, as your investment will be bought out at the offer price, ending your participation in the company.

Next Steps for Investors

• Review the offer documents and any communications from the Offeror regarding the compulsory acquisition process.
• Prepare for the delisting and loss of public shareholder rights.
• If you have questions, reach out to the company or your broker for guidance on the compulsory acquisition.
• Monitor for further announcements as the delisting process completes.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Investors should consult their own advisors and refer to official company documents and announcements for detailed terms and conditions. The author does not guarantee the accuracy or completeness of information contained herein.

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