Aspial Corp, Koh family-linked entity move to privatise AF Global for S$31.8 million
[SINGAPORE] A consortium comprising jewellery retailer Aspial Corp and an entity linked to the Koh family behind it has launched a bid to privatise hospitality player AF Global .
Aspial and JK Global Investment – a Koh family-linked entity – are proposing to buy the remaining shares of mainboard-listed 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, whose business covers jewellery retail, pawnbroking and real estate, owns a 41.75 per cent stake in AF Global, whose subsidiaries own and operate hotels and serviced residences. Another 30.91 per cent of AF Global 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 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.
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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.”
AF Global was incorporated and listed on the SGX mainboard in 1973.
The proposed acquisition is conditional upon certain conditions, such as the approval of shareholders representing at least three fourths of the value of scheme shares.
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On Tuesday, shares of Aspial closed flat at S$0.103, while AF Global shares closed flat at S$0.096.
