Osim International looks set for delisting after a privatisation bid by Osim International chairman and CEO Ron Sim Chye Hock.
Sim has made an unconditional cash offer to minority investors to sell their stake at a significant premium above the current share price as the company experiences challenging market conditions.
His offer of S$1.32 (USC96) for each issued ordinary share has been made through his own private investment vehicle Vision Three, with the announcement being lodged with the Singapore Exchange. At the time of the offer, Sim owned 506,554,914 shares of the company, representing a 68.31 per cent stake.
The offer price represents a premium of about 31.8 per cent and 33.5 per cent to the volume-weighted average price (VWAP) for each share for the one- and three-month periods respectively up to and including February 29. Compared to the unaffected price, the offer represents a premium of about 18.9 per cent.
Credit Suisse (Singapore) is acting as exclusive financial advisor with Morgan Lewis Stamford as legal advisor to Sim.
Osim International markets, distributes, sells and franchises healthy lifestyle products internationally. It offers massage chairs, foot reflexology rollers, handheld massagers and fitness equipment. The group is also involved in the wholesale, retail and distribution of nutraceutical products and supplements through GNC stores, the production, sale and marketing of luxury tea products, through the TWG chain, and the provision of employee training and development services.
