Tue, Jun 30, 2020 - 7:16 PM THE founder of Mainboard-listed Luzhou Bio-Chem Technology Limited wants to take the company private in a deal that
Tue, Jun 30, 2020 – 7:16 PM
THE founder of Mainboard-listed Luzhou Bio-Chem Technology Limited wants to take the company private in a deal that values it at S$17.8 million, so as to gain greater management flexibility and control over the company.
Niu Ji Xing, who is also Luzhou’s executive chairman and chief executive, on Tuesday launched a voluntary conditional general offer via investment holding company Starnova, of which he is the sole director. Starnova is offering to acquire all the ordinary shares in Luzhou at S$0.03 apiece. The offer price is final and Starnova does not intend to revise it.
As of the announcement, Luzhou had an issued and fully paid-up share capital of RMB308.7 million (S$60.89 million) comprising 594 million shares. The deal thus values the company at about S$17.8 million.
Mr Niu and investment holding company Faith Corporate International Limited, of which he is the sole director, hold a combined 41.2 per cent stake in Luzhou and have undertaken to accept the offer.
According to the exchange filing, the reason for the privatisation is to provide the offeror and the company with “greater control and management…