SLB Development jumps 33% after S$0.23-per-share privatisation offer from Lian Beng’s Ong family

SHARES of property player SLB Development surged on Monday (Jan 27) morning, after it announced last week that it had received a privatisation offer from Lian Beng’s Ong family.

The counter was up 30.2 per cent or S$0.051 at S$0.22 after its trading halt was lifted at 9.20 am. SLB had called for a trading halt on Jan 22, pending the privatisation announcement.

By 9.51 am, the counter rose even further, gaining 33.1 per cent or S$0.056 at S$0.225, after 181,500 shares changed hands. The last time it traded at such levels was in 2018.

After the market closed last Friday, Lian Beng announced that its board of directors – comprising the controlling Ong family – has proposed to acquire and privatise SLB via a scheme of arrangement.

The scheme consideration for each share is S$0.23 in cash.

Lian Beng currently holds about 708.5 million shares in SLB, representing about 77.6 per cent of the total number of issued shares. Both companies said that they entered into an implementation agreement setting out the terms and conditions of the scheme.

Shares of SLB were last traded at S$0.169, on Jan 22, its last trading day. The offer price represents a premium of 36.1 per cent over the last transacted price.

The Ong family had decided to privatise the property developer amid the low trading volume of SLB’s shares. The acquisition will thus provide shareholders with “a unique cash exit opportunity to realise their entire investment”.

The scheme presents an opportunity for shareholders to realise their investments at a premium without incurring brokerage fees, the companies said.

Delisting from the Singapore bourse would also allow SLB to save on expenses and costs relating to the maintenance of its listing status, they added.

After the acquisition and the scheme are completed, Lian Beng intends to “undertake a review of the operations, management and financial position of the group and will evaluate and pursue any opportunities arising in the ordinary course of business which it regards to be (its) interests”.

Shares of SLB closed at S$0.225 on Monday, up S$0.056 or 33.1 per cent.