The mandatory offer is triggered after he ups his stake in the consumer product manufacturer to 43.38% from 31.82%

 

[SINGAPORE] Local tycoon Sam Goi has made a mandatory offer to buy the remaining shares of PSC Corp   : DM0 -2.44%that he does not already own at S$0.40 apiece. This comes after he spent S$25.2 million on 63 million shares to raise his stake to 43.38 per cent. 

 

The offer represents a premium of 7.8 per cent over the volume weighted average price of S$0.371 in the past one-month period, according to a bourse filing by UOB Kay Hian on his behalf.

 

Dubbed the local &ldquo popiah king&rdquo , Goi on Thursday (Jul 10) bought the shares at S$0.40 apiece, lifting his stake from 31.82 per cent, the filing said. This acquisition, which will bring the number of shares he owns in the company to 236.5 million, will be completed on Jul 11 by way of a married deal.

 

Given that PSC has a paid-up share capital of S$177.3 million comprising 545.3 million shares, Goi&rsquo s offer would amount to S$123.5 million, according to calculations made by The Business Times.

 

Goi is also the executive chairman of PSC, a fast-moving consumer good manufacturer and distributor. He has been steadily buying shares in the company over the past few years.

 

The latest purchase triggers a rule in the Singapore Code on takeovers and mergers whereby anyone who holds more than 30 per cent, but not exceeding 50 per cent of the voting rights of a company is required to make a mandatory general offer for all the shares in the company which he does not already own.

 

The offer price will not be cut, or adjusted for the final dividend of S$0.013 per share for the financial year ended Dec 31, 2024. This was paid out on Jun 18, 2025.

 

UOB Kay Hian said Goi&rsquo s offer presents existing shareholders with a &ldquo clean cash exit opportunity to realise their entire investment&rdquo , without incurring brokerage and other trading costs.

 

In laying out the rationale of the offer, the filing also notes that the trading volume of PSC shares has been low &ndash at a daily average of around 183,790 shares in the previous month. The number drops to 76,287 for the past 12 months.

UOB Kay Hian also notes that PSC faces a challenging business environment in Singapore and its other key markets, due to tariff uncertainties and geopolitical tensions. 

 

Adverse weather conditions have also impacted commodity prices and production costs for PSC and its subsidiaries, it noted.

 

Goi does not currently intend to actively pursue PSC&rsquo s delisting from the mainboard, the filing said.

 

PSC shares fell S$0.01, or 2.4 per cent, to close at S$0.40 before the announcement.

 

In a separate filing, UOB Kay Hian said that Goi will make a mandatory unconditional cash offer for Tat Seng Packaging Group, in which PSC owns a controlling stake. 

 

This is if Goi&rsquo s offer for PSC becomes unconditional, or if he acquires statutory control of the company, he will need to make an offer for Tat Seng under what is known as a chain offer condition. 

 

PSC holds 100.5 million of Tat Seng&rsquo s ordinary shares, or a stake of around 63.95 per cent. Goi owns 409,700 shares, or about 0.26 per cent. 

 

If and when a chain offer for Tat Seng is made, the price shall be S$0.899 a share. 

Revenue rises 2.1 per cent to S$243.3 million on improved consumer business sales

 

FAST-MOVING consumer goods manufacturer and distributor PSC Corporation : DM0 0% reported a profit of S$11.2 million for the first six months of the 2024 financial year, an increase of 14 per cent from the previous year, the group said in a bourse filing on Thursday (Aug 8).

 

Revenue for H1 was up 2.1 per cent at S$243.3 million on higher sales from its consumer business in Singapore and packaging business in China. It also reported higher sales from its Malaysia consumer business, though this contribution was offset by currency conversion. The results included first-time contributions from the group&rsquo s new subsidiaries Kim Guan Guan Coffee Trading and Kim Guan Guan Coffee Roaster, which it acquired in April for an aggregate consideration of S$1.6 million.

 

The group&rsquo s gross profit rose 9.9 per cent to S$57.9 million, which it attributed to lower cost per unit from its packaging business, thanks to higher utilisation and lower material cost.

 

As a result, its overall gross profit margin rose 1.7 percentage points to 23.8 per cent.

 

Earnings per share stood at 2.04 Singapore cents for the half, up from 1.78 cents in the previous corresponding period.

 

A proposed interim dividend of 0.5 Singapore cent per share will be payable on Sep 26, 2024.

 

Sam Goi, PSC&rsquo s executive chairman, said: &ldquo We are pleased that our businesses are off to a good start in the first half of the year, despite the strong Singapore dollar which dampened our operations in Malaysia. However, we envisage that we are on a robust footing with our positive net cash position and strong balance sheet.&rdquo

 

In the update, the group noted that its consumer business revenue grew at a slower pace compared with H1 2023, and that geopolitical tensions, port congestion and inflation pressure continue to increase freight and operational costs. But it added that it will leverage its large portfolio of consumer brand assets to build growth and business resilience and actively explore new opportunities.

PSC Corporation : DM0 0% executive chairman Sam Goi Seng Hui continued to build his interest in the consumer product manufacturer and distributor. Between Apr 26 and 30, Goi acquired 286,200 shares of the company at S$0.35 each, taking his total interest from 30.77 to 30.82 per cent. PSC, which was established in 1974, is celebrating 50 years in Singapore and the region this year.

 

Looking to the future, Goi maintained that to gain competitive advantage, PSC will have to scale up, expand its market footprint, extend its product portfolio, and enlarge the mindshare of its brands. He has added that the group will continue to harness its existing strengths such as its brands, network, and operational capabilities to accelerate its growth in the years ahead.

 

Apart from building brands, Goi said the group will intensify its efforts to bring in more agency products to expand its offering, while also deepening its foothold in Singapore and Malaysia markets, while looking beyond for further growth.

Between Mar 14 and 20, PSC Corporation : DM0 0% executive chairman Sam Goi acquired 1,080,500 shares at an average price of S$0.35 per share. With a consideration of S$378,473, this increased his direct interest from 30.46 per cent to 30.66 per cent.

 

Goi has been gradually increasing this direct interest from 30.41 per cent at the end of February, and 30.02 per cent prior to December 2023.

 

PSC is a home-grown consumer essentials provider that manufactures, distributes and markets a diverse range of quality consumer products. In February, Goi maintained that despite the challenging environment, PSC performed better in FY23 (ended Dec 31), adding that with the improved net profit from FY22, the group has proposed a special dividend of S$0.005 in celebration of its 50th anniversary, in addition to the final and interim dividends.

 

Goi said that although the economic conditions in China continue to be tough and inflationary pressure in Singapore weighs on consumer spending, the group will focus on cost control measures while building on its strong brand equity and customer engagement, as it continues to explore opportunities to drive growth.

 

PSC Corporation&rsquo s DM0 0.00% executive chairman Sam Goi has acquired 164,900 shares in the company for $58,692.86 or 35.593 cents each.

 

The shares were sold via market transaction on March 21.

 

After the purchase, Goi&rsquo s stake in PSC Corp has increased to 30.69% from 30.66% previously.

 

PSC Corp has reported earnings of $21.8 million for FY2023, up 11.8% over the preeding year, even though revenue was down 12.8% to $482.1 million.

 

The company was able to fetch better margins for its packaging business, thanks to lower material costs.

 

PSC Corp plans to pay a final dividend of 1 cent, plus a special dividend of 0.5 cents. This will bring the total payout for FY2023 to 1.8 cents, up 44% over FY2022.

 

Executive chairman Sam Goi says the special dividend is to help mark the company' s 50th anniversary and to show its appreciation to shareholders.

 

In a separate announcement, PSC says it is buying a piece of freehold vacant land of some 1.2ha in Pontian, Johor, for RM3.3 million ($964,695).

 

PSC plans to build a factory to boost its production capacity by up to 7 times.

 

The company plans to make products such as tofu, noodles and other foodstuffs sold under PSC' s " Fortune" brand at this new facility.

 

" This new factory will expand Fortune&rsquo s production capacity to enable the brand to penetrate deeper into the vast Malaysian market and grow our market share through our existing FMCG

network and channels," says Goi.

 

He warns that the economic condition in China continues to be tough and inflationary pressure in Singapore weighs on consumer spending.

 

Therefore, PSC will focus on cost control measures while building on its strong brand equity and customer engagement as it continues to explore opportunities to drive growth.