In today’s briefing:
- Low Keng Huat (LKH SP): Conditional VGO at S$0.72 May Need a Bump
- Low Keng Huat (LKH SP)’s Clean MBO
Low Keng Huat (LKH SP): Conditional VGO at S$0.72 May Need a Bump
- Low Keng Huat Singapore (LKH SP) has disclosed a voluntary conditional offer from the Managing Director at S$0.72 per share, a 17.1% premium to the last close price.
- While the offer represents an all-time high, it is below net asset value (implying a P/NAV of 0.91x). It is also light compared to precedent transactions.
- The offer price has not been declared final. A bump may be needed to satisfy the 90% minimum acceptance condition.
Low Keng Huat (LKH SP)’s Clean MBO
- Late Friday (28th November), general building contractor Low Keng Huat Singapore (LKH SP) (“LKH”) announced a voluntary conditional Offer from Dato’ Marco Low Peng Kiat, LKH’s controlling shareholder (54.13%).
- Low is offering S$0.72/share, a so-so 17.1% premium to undisturbed, but a decade-high price. Plus the share price is up 104% YTD. Recent results (to 31st July) were also underwhelming.
- The Offer has a 90% acceptance hurdle condition. Low does not intend to maintain listing. The price hasn’t been declared final, possibly leading to a bump in the home stretch.
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