Boustead Singapore makes 90 cent per share privatisation offer for Boustead Projects

Boustead Singapore has launched a voluntary unconditional offer for all shares of Boustead Projects that it does not own at a price of 90 cents each. The company intends to privatise Boustead Projects and delist it from the Mainboard of SGX-ST. Boustead Singapore currently holds 171 million shares representing approximately 54.87% of the total number of issued shares of Boustead Projects.

Boustead Singapore believes that the proposed acquisition would provide the opportunity to focus on rebuilding its engineering and construction business as a private limited company without additional obligations as a listed company. The group also believes that it would facilitate a simplification of the group’s structure, allowing for sharper focus on operations and increasing shareholder value.

The offer price is at a premium to both the last traded price per share and volume-weighted average price of the shares for the month prior to the announcement date. Boustead Singapore believes that this provides an opportunity for shareholders to realise their investment at a premium.

The potential acquisition is part of Boustead Singapore’s ongoing strategic reviews and objective to streamline its investments, businesses, operations and corporate structure. This is being done in response to the Covid-19 pandemic, which has significantly impacted the profits of Boustead Projects’ engineering and construction business.

Shares in Boustead Projects closed at 0.5 cents higher or 0.6% up on Feb 6 at 84 cents. Boustead Singapore has indicated that the offer provides an opportunity for shareholders to realise their investment at a premium.

This announcement marks an important step in the group’s ambitions to restructure its investments and enable Boustead Projects to focus on its core business operations in a private limited company. It also marks an opportunity to unlock value for Boustead Singapore and Tengah EC its shareholders.