The offer represents a premium of 20.8% over the stock&rsquo s last traded price

 

THE Goh family that controls Ossia International : O08 0% on Wednesday (Jun 12) proposed to privatise the company at S$0.145 per share in cash through a voluntary unconditional offer.

 

As at Wednesday, the Singapore-based distributor and retailer of luxury goods has an issued and paid-up share capital of S$31.4 million, with about 252.6 million shares.

 

The offerors are the group&rsquo s executive chairman, George Goh Ching Wah, non-executive director Goh Ching Lai, and chief executive officer Goh Ching Huat.

 

The Goh family said that it is currently their intention to ensure continuity in the operations of the company and its subsidiaries. They added that the rationale for the privatisation offer is for shareholders to have the opportunity to realise their investment at a premium without incurring brokerage costs.

 

The offer price of S$0.145 per share represents a premium of approximately 20.8 per cent over Ossia International&rsquo s last traded price of S$0.12 per share on Jun 7, the last full trading day before the offer announcement. It also represents premiums of about 19.8 per cent, 20.8 per cent, and 16 per cent over the one-month, three-month and six-month volume-weighted average prices, respectively, prior to and including the last trading date.

 

Other reasons include the low trading liquidity of Ossia International&rsquo s shares, with average daily trading volumes at 16,200 shares one month before the offer announcement, representing a mere 0.006 per cent of the company&rsquo s total issued shares. Additionally, the company has incurred compliance costs related to maintaining its listing status, which could be avoided if delisted.

 

The Goh family also believes that the company is unlikely to need access to equity capital markets in the near future, and delisting would provide greater management flexibility. The dividend of S$0.007 per share for the financial year ended Mar 31, announced by the company on May 28, will still be paid to shareholders if approved at the annual general meeting, the family said.

 

Ossia International called for a trading halt last Friday after market close, with its shares ending at S$0.12. Following the announcement of the privatisation offer, the company has requested the lifting of the halt, in a separate bourse filing on Wednesday.

WATCH-LISTED company Ossia International said the Singapore Exchange Securities Trading (SGX-ST) confirmed on Tuesday (Dec 27) it does not object to granting it a third time extension to meet the financial criteria to exit the watch list.

 

In a bourse filing, the Singapore-based distributor and retailer of luxury goods said the extension being sought was for another 12 months, to Dec 4, 2023.

 

The original deadline was Dec 4, 2020.

 

The approval is subject to the mainboard-listed company satisfying certain waiver conditions, such as stating reasons for seeking the waiver.

 

Ossia said it has made &ldquo concerted&rdquo efforts to increase its profitability and has returned to profitability, achieving a consolidated pre-tax profit for the last three financial years ended Mar 31 in 2020, 2021, and 2022.

 

But the company still has more financial exit criteria to meet &ndash it has not had an average daily market capitalisation of S$40 million or more over the last six months, as at the date of the extension application. Its market capitalisation is S$29.05 million as of Tuesday.