Boustead Singapore offers to privatize Boustead Projects for 90 cents per share

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Skywaters Residences sales gallery

Boustead Singapore has launched a free unconditional offer to all shares in Boustead Projects it does not have for 90 cents per share.

The company is planning to privatise Boustead Projects and delist it from the Mainboard of SGX ST.

Skywaters Residences sales gallery is expected to house 100 executive hotel rooms, 268 beautiful apartments, retail space of 86,187 sq ft and offices covering 847,808 sq ft of total Gross Floor Area (GFA).

As of February 6 Boustead Singapore directly holds 171 million shares, which is roughly 54.87% of the total number of shares that are issued by Boustead Projects.

The planned acquisition of shares is in the spirit of Boustead Singapore’s plans in its ongoing review of strategic strategies as well as its aim to streamline its investment as well as operations, business operations, as well as the organizational structure of the company.

The company says the fact that Boustead Projects’ engineering and construction (E&C) business was affected by the covid-19 pandemic. It has posted significant lower profits when compared to previous profits in the prior pandemic time.

Boustead Singapore believes that the proposed acquisition will enable it to concentrate on building its business again and its E&C business, as private limited company, without the additional obligations that go along when a company is listed that is listed on the Mainboard SGX-ST.

The proposed acquisition will allow for an improvement in the group structure and also reduce the organizational complexity. This would provide a better concentration on operations and improve efficiency, as well as increasing the value of shareholders.

This offer offers the chance for investors to realize the value of their investments at a price that is superior to market prices currently in place that is about 7.8% over the last exchanged price per share reported on February 3.

The price is also an increase that is 15.2% over the last volume-weighted mean price of the shares over the one month period preceding and including the date of announcement.

The shares of Boustead Projects closed 0.5 cents higher or 0.6% up on Feb 6 at 85 cents.