SINGAPORE (THE BUSINESS TIMES) – Catalist-listed Silkroad Nickel’s executive director is making a general offer to take the Indonesia-based nickel ore miner private at an offer price of 42 cents per share.
Horowitz Capital is making a conditional general offer of 42 cents apiece for all the issued ordinary shares in Silkroad Nickel that it does not already own, control or has agreed to acquire. The consideration for each offer share will be – as elected by the company’s shareholders – either 42 cents in cash or one new ordinary share in Horowitz Capital at an issue price of 42 cents per new share.
Horowitz Capital’s sole shareholder is Silkroad Nickel executive director Nasser Aljunied. Mr Nasser is one of three members sitting on the board of Horowitz Capital, along with Silkroad Nickel chief executive Hong Kah Ing and Mr Lester Tay Lee Chye.
In the offer announcement, which was released to the Singapore bourse on Monday afternoon (Aug 29), Horowitz Capital pointed to the low trading liquidity of the counter, adding that the offer is an opportunity for shareholders to realise their investment at a premium to market price.
The cash consideration represents a premium of about 2.4 per cent over the last transacted price of 41 cents on Aug 22, which was the last full day the shares were traded on the Singapore Exchange before the announcement.
It also represents a premium of about 4.7 per cent and 5 per cent over the volume-weighted average price (VWAP) per share for the one-month and three-month periods prior to and including the last trading day respectively. However, it is 5.6 per cent lower than the VWAP for the six-month period prior to and including the last trading day.
The general offer is conditional on Horowitz Capital having received valid acceptances at the close of the offer, which results in it – along with parties acting in concert with it – holding at least 90 per cent of the total number of shares in Silkroad Nickel.
Far East Mining, along with other shareholders, which collectively hold some 222.65 million shares or 85.2 per cent of the total number of shares in Silkroad Nickel, have given an irrevocable undertaking to tender their shares to Horowitz Capital.
The counter was halted from trading on Monday morning, pending the release of the announcement.