Electronics services provider AEM Holdings on Monday (Feb 15) said it received in-principle approval from the Singapore Exchange (SGX) for the listing and quotation of new shares on Saturday, a pre-condition for its $99.7 million buyout offer for CEI to go through.

 

AEM has affirmed its final $1.15 per share offer for CEI, which has an option for all-cash or cash with new AEM shares. The electronics services provider said those who accept the offer without stating their preference will be deemed to have opted to receive in cash.

 

The alternative is either a mix of 85 per cent cash and 15 per cent new shares or 70 per cent cash and 30 per cent new shares, at an issue price of $3.55 for each new AEM share. This means either $0.9775 in cash and 0.0486 of a new AEM share or $0.805 in cash and 0.0972 of a new AEM share.

 

The $1.15 offer price marks a premium of 26.1 per cent to the volume-weighted average price of CEI shares in the 12 months to Jan 8, the last trading day before the pre-conditional offer was made.

 

Prior to trading halts called by both AEM and CEI on Monday morning, AEM shares last traded at $4.30 on Feb 11, while CEI shares last traded at $1.16 on the same day.

 

AEM chairman Loke Wai San said: " Adding CEI to AEM' s portfolio solidifies our leadership position in serving semiconductor and electronics companies in the advanced computing, 5G and artificial intelligence space."

 

He noted that CEI' s regional footprint and expertise in their field will strengthen AEM' s resilience and allow it to be even more responsive to the needs of the firm' s global customer base.

 

AEM said shareholders will receive the offer document between 14 and 21 days from Monday. The offer will remain open for acceptance for at least 28 days from the date the offer document is posted.