CHALLENGER Technologies announced that it is voluntary delisting subject to Singapore Exchange’s approval of Challenger’s application, and a resolution
Digileap Capital making a cash exit offer for all of the electronic retailer’s shares at an exit offer price of S$0.56 per share.
Base on the offer of 56 cents, P/B is 2.1x and P/E is 9.92x base on FY2018 financial numbers. There will be a 2 cents dividends coming up thus the actual offer is only 54 cents which is 1 cent higher than the price before the halt. With 18.2 cents of cash per share, they only need to fork out 35.7 cents per shares to own the enterprise. I personally felt that this offer is a low ball offer.
As per SGX rules for voluntary delistings, the approval threshold for the voluntary delisting to proceed is 75% and Challenger will be delisted as the CEO and Loo family held a total of 78.64% of total shares, have provided undertakings to vote in favor of the delisting resolution and accept the exit offer.
DBS Bank has been appointed as financial adviser to the offeror for the delisting and the exit offer.