Hafary founding family makes bid to take company private at S$0.64 a share
It cites low trading liquidity and mounting compliance costs as reasons to delist
The founding family of Hafary Holdings has submitted a bid to take the building-materials supplier private, offering S$0.64 per outstanding share. This bid, made through 23 Capital investment vehicle, represents a 4.9% premium to the stock's last closing price and nearly 20% above its 12-month average price. Trading of Hafary shares was suspended prior to market open on the news.
The Low family, holding 39.14% of the company through various directors, secured a commitment from majority shareholder Hap Seng Investment Holdings, which owns 50.82%. Together, they control 89.96% of the company, nearly the 90% threshold required to take it private. UOB serves as the sole financial adviser for the offer. Hafary, specializing in premium tiles, stone, and sanitary ware, has not listed on Singapore's equity capital markets in the past decade, relying on alternative funding sources such as bank borrowings instead.
The company's trading interest has been sparse, with an average daily volume of 32,359 shares over the past year, representing less than 0.016% of its total shares. The cash offer provides retail investors trapped by the stock's illiquidity a clean exit without brokerage fees. The offer will remain open for acceptance for at least 28 days from the offer date of September 28.
Upon privatization, the Low family forecasts enhanced management flexibility to navigate changing market conditions and optimize resources without public listing scrutiny and compliance costs. Hafary listed on the SGX Catalist board in December 2009, transferring to the mainboard in June 2013.
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