Green Esteel intends to make a mandatory conditional general cash offer for all issued ordinary shares of HG Metal Manufacturing (SGX:BTG), excluding treasury shares and shares already held by Green Esteel and its concert parties, according to a Monday filing on the Singapore Exchange.
The move follows Green Esteel's acquisition of 63.95 million shares of HG Metal under a rights issue, raising its stake in the target to 44.44% from 29%, surpassing the 30% threshold that triggers a mandatory offer under Singapore's Code on Take-overs and Mergers.
The offer price is set at SG$0.266 per share, equivalent to the highest price paid by Green Esteel during the six months preceding the rights issue.
The offer is conditional upon the offeror achieving control of over 50% of HG Metal's voting rights. Green Esteel intends to keep the listing status of HG Metal on the SGX's Mainboard, but maintains the flexibility to assess options if the target's public float drops below 10%.
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