Independent financial adviser (IFA) Xandar Capital has deemed the acquisition offer for Allied Technologies by SRS Auto Holdings not fair and not reasonable.

 

Allied Tech&rsquo s independent directors have also agreed with the IFA, and are recommending that shareholders reject the offer.

 

At S$0.0088 per share, the privatisation offer values the Catalist-listed precision engineering company at S$15.6 million. The privatisation offer is also 20 per cent lower than the last traded price of Allied Tech&rsquo s shares.

 

Founder of fashion company bYSI, Tan Yew Kiat, is the sole shareholder of private car rental and motor financing company SRS. In a filing to the Singapore bourse in June, Allied Tech said that SRS Auto, and persons acting in concert with it, control 42.7 per cent of the total number of issued shares.

 

In a circular sent to shareholders of the firm on Jul 22, Xandar Capital outlined several reasons for arriving at the conclusion that the offer was neither fair nor reasonable. It noted, among other things, that the offer price is below the estimated value of the shares, which ranges between about S$0.0298 and S$0.0305.

 

It also highlighted that the group generated profits in FY2020, FY2021 and Q1 2022 and that the group&rsquo s financial position was relatively healthy as at Mar 31, 2022.

 

In making the offer, SRS Auto had said that deal gave shareholders an opportunity to exit their investments since the counter has been suspended from trading. Shares in Allied Tech have been suspended from trading since May 2019.

 

Earlier this month, shareholders of Allied Tech voted to oust the company&rsquo s independent non-executive chairman and chief executive, replacing them with three newly elected directors. The ouster was put to a vote by shareholders at an extraordinary general meeting on Jul 13, with 97 per cent voting in favour. Allied Tech has also made the headlines over S$33 million in escrow funds that have gone missing.

 

THE shareholders of Allied Technologies have voted to boot out the company&rsquo s independent non-executive chairman and its chief executive, and replaced them with 3 freshly elected directors.

 

The ouster, requisitioned by shareholders Lin Tah Hwa and Kenneth Low Si Ren, was supported by about 97 per cent of those who voted at an extraordinary general meeting (EGM) held on Wednesday (Jul 13), said a regulatory filing by the Catalist-listed precision-engineering company.

 

Independent non-executive director and chairman Chin Chee Choon and chief executive-cum-executive director Clement Leow were shown the door they will be replaced by Lim Chee San, Davy Goh and Choo Weng Wah on the board, having been elected at the EGM.

 

Lin owns 168 million shares of Allied Technologies and Low, 100 million shares together, they represent a total of 15.14 per cent of total shares outstanding. Low is also an executive director of Allied Technologies, shares of which have been suspended from trading.

 

The EGM was carried out amid an acquisition offer by private vehicle rental and financing company SRS Auto Holdings, at S$0.0088 per share. SRS Auto Holdings is owned by women&rsquo s apparel company bYSI founder Tan Yew Kiat.

 

Allied Technologies has appointed Xandar Capital as the independent financial adviser to its independent directors for the purpose of making a recommendation on the offer that values the firm at S$15.6 million.

 

Allied Tech has been mired in a saga involving S$33 million in escrow funds that have gone missing.

ALLIED Technologies : A13 0%has appointed Xandar Capital as the independent financial adviser (IFA) to provide a recommendation to shareholders on the acquisition offer from SRS Auto Holdings.

 

The Catalist-listed precision engineering company stated in a regulatory filing on Tuesday (Jul 12) that Xandar Capital will advise its independent directors for the purpose of making a recommendation on the S$0.0088 per share offer, which values Allied Tech at S$15.6 million.

 

Women&rsquo s apparel company bYSI founder Tan Yew Kiat is the sole shareholder of private car rental and motor financing company SRS Auto Holdings. Despite multiple calls, Tan has refused to answer except the first when the 45-year-old told The Business Times that he was unwell.

 

The offeree circular containing the advice of Xandar Capital and the recommendation of the independent directors in relation to the offer will be sent to shareholders within 14 days from the date of despatch of the offer document from SRS Auto Holdings.

 

Allied Tech has been mired in escrow funds worth S$33 million gone missing, as well as boardroom tussles. Its shares are under trading suspension.

 

EMBATTLED Allied Tech is set to convene an extraordinary general meeting (EGM) on Jul 13, in response to a requisition notice from 2 shareholders to oust the CEO and chairman as directors.

 

The notice was issued on May 9 by existing shareholder Lin Tah Hwa and executive director Kenneth Low, who both hold more than 10 per cent of Allied Tech&rsquo s shares. As of May 9, Lin owns 168 million shares and Low owns 100 million shares, representing a total of 15.1 per cent of the company.

Both individuals had sent letters to the board proposing the removal of independent non-executive director and chairman Chin Chee Choon and chief executive Clement Leow. They also mooted the appointment of 3 new directors: Lim Chee San, Davy J Goh and Choo Weng Wah.

 

Earlier this year, a special audit report was released on the circumstances surrounding Allied Tech' s missing funds held in escrow by law firm JLC Advisors, for which lawyer Jeffrey Ong was charged. The auditors found failure on the part of the independent directors in safeguarding the company' s interest in several instances.