Silverlake Axis announced on 26 August that it plans to go private through a buyout offer of 36 cents per share, according to The Edge Singapore.
This cash offer represents a 28.1% premium over the volume-weighted average price (VWAP) for the one-month period leading up to 23 August.
Additionally, the offer provides premiums of 25%, 31.9%, and 31.9% over the three-month, six-month, and 12-month VWAPs, respectively.
Shareholders of Silverlake Axis also have the option to receive 30 cents in cash plus one new redeemable preference share in the capital of the offeror, E2I Pte. Ltd.
These preference shares will be redeemed at 18 cents each after five years, though E2I will not be listed on any securities exchange.
E2I, established on 10 July, is owned by Zezz FundQ Pte. Ltd., which is controlled by Goh Peng Ooi, the Executive Chairman and Founder of Silverlake Axis.
Goh’s daughter, Shiou Ling, and Ng Lip Chi, Lawrence, also serve as directors of E2I.
Zezz FundQ is the largest shareholder in Silverlake Axis, holding 74.07% of the company’s shares. Goh also holds a small direct stake in the company.
The rationale behind the offer, according to Silverlake Axis, is reportedly due to the consistently low trading volumes, with average daily trades ranging between 435,309 and 947,576 shares across different time periods.
This represents less than 0.04% of the company’s total shares.
The privatisation is said to offer provides shareholders with a “clean cash exit opportunity” and reflects a valuation of 2.7 times the company’s net asset value of 13.5 cents per share.
Upon successful completion, Silverlake Axis will be delisted, giving the company more control over its resources while reducing compliance and human resource costs.
In FY2024, Silverlake Axis reported a 39% year-on-year drop in earnings to RM103.3 million, despite a slight 2% revenue increase.
Shares in Silverlake Axis closed at 30 cents on 23 August, and trading was halted on the morning of 26 August.
According to The Business Times, the shares surged 23.3% to S$0.37 after the announcement but later eased to S$0.365.
