Aspial Corp, Koh family-linked entity move privatise AF Global for S$31.8 million consideration
[SINGAPORE] A consortium comprising Aspial Corp and an entity linked to the Koh family behind it has launched a bid to privatise mainboard-listed AF Global .
Aspial and JK Global Investment – a Koh family-linked entity – are proposing to buy the remaining shares of AF Global that they do not already control. The acquisition will be made through AFG Investment, a special purpose vehicle incorporated by the consortium.
AFG Investment, the offeror, is looking to acquire some 288.7 million shares or a 27.35 per cent stake in AF Global for S$0.11 per share or a total consideration of around S$31.8 million.
Aspial owns a 41.75 per cent stake in AF Global while another 30.91 per cent of its shares are held by Koh Wee Meng, the executive chairman of the property developer Fragrance Group and brother of Koh Wee Seng, who also helms Aspial.
Aspial said that the privatisation will offer greater flexibility to manage AF Global and optimise capital resources without the costs and regulatory restrictions associated with a listing on the Singapore Exchange (SGX).
It pointed out that AF Global’s listing status serves “limited purpose” as the group has not tapped on the equity markets to raise funds since 2010 and is unlikely to do so. Despite this, it continues to incur costs associated with being listed.
Aspial said: “The offeror is of the view that AF Global is unlikely to require access to Singapore equity capital markets to finance its operations in the foreseeable future. Accordingly, the offeror does not believe it is necessary for AF Global to maintain a listing on the SGX.”
On Tuesday, shares of Aspial closed flat at S$0.103, while AF Global shares closed flat at S$0.096.
