Clean Water Investment, an affiliate of private equity firm CDH China Management, has launched a voluntary conditional cash offer to take over Singapore-listed water treatment group Sinomem Technology Limited.
At S$0.70 a share, the cash offer for all the issued and paid-up ordinary shares of the group works out to a total of S$351.25 million. It represents a premium of 28.44 per cent over the last traded price of S$0.545, and 59 per cent over Sinomem’s IPO price.
A statement issued by Sinomem said that the offer is conditional upon Clean Water Investment having received, by the close of the offer, valid acceptances from shareholders which will result in Clean Water Investment holding not less than 90 per cent of the total number of issued shares. Clean Water plans to privatise and de-list Sinomem from the Singapore Exchange once the takeover is successful.
The founders of Sinomem, Dr Lan Wei Guang and Madam Chen Ni, have provided irrevocable undertakings to accept the offer - their stake amounting to 281,269,000 shares or about 56.05 per cent of the total number of issued shares, the statement said.
Sinomem is an integrated membrane technology company. Its business covers the entire membrane industry value chain, namely membrane material manufacturing, membrane process and engineering, and downstream nutraceuticals production that employs membrane-based separation and purification technologies.
Clean Water Investment is a special purpose vehicle controlled by CDH Water, which is indirectly controlled by CDH China Management Company Limited.
DBS Bank will act as the financial adviser to Clean Water Investment for the deal.
