Tuesday, November 27, 2012

WBL halts shares after Straits Trading takes stake

Singapore conglomerate WBL Corp said on Tuesday it has requested a trading halt in its shares pending the release of an announcement, after news of a possible offer for the company.

Straits Trading Co said on Monday it will buy a total of 64 million WBL shares from investment managers Aberdeen Asset and Third Avenue Management LLC in return for new Straits Trading shares, in a deal valued at around $248 million.

Following the transaction, Straits Trading will become WBL’s largest shareholder with a 44.6% stake, and will make a general offer for WBL shares it doesn’t own by paying WBL holders $3.41 in cash or 1.07 Straits Trading shares.

WBL, which has businesses in technology, property and automotive, rose 4.3% to $3.64 in early trade before the shares were halted.

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