Tuesday, November 27, 2012

Straits Trading to make mandatory conditional offer for WBL Corp at $3.41 in cash

The Straits Trading Company is planning to make a mandatory conditional offer for all the stocks in WBL Corp it does not own, according to a SGX statement it released last night.

 

Straits Trading will pay $3.41 in cash or 1.07 in new Straits Trading shares for each WBL share. The potential maximum cash outlay is $547 million, based on the cash offer and assuming 100 per cent acceptances of the general offer with all shareholders electing to be paid in cash.

 

The company has already managed to acquire a 7.5% stake in WBL from fund manager Aberdeen Asset Management Asia and a 16.13% stake from fund manager Third Avenue Management LLC. This means Straits Trading Company now controls an aggregate of up to 40.62% of WBL.

 

If the proposed acquisition is successful, Straits Trading will eventually hold a 44.57% stake in WBL.

 

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