Cheng holds 88.9% of $Hai Leck (BLH.SG)$ .
Hai Leck Holdings founder Cheng Buck Poh has made an offer to privatise the company at $0.55 per share via a scheme of arrangement.
According to the joint announcement by the company and Cheng Investment Management Pte. Ltd., the offer excludes shares held by Cheng, his affiliated company Cheng Capital Holdings Pte. Ltd., and any treasury shares.
Cheng controls 88.9% of Hai Leck through his direct stake and Cheng Capital.
The acquisition will focus on the remaining eligible shares, with shareholders set to receive $0.55 in cash for each share.
The move comes as the company faces financial challenges, having reported a net loss of $0.1m for the financial year ended 30 June 2024, compared to a net profit of $4.3m the previous year.
Cheng Investment Management believes the privatisation will provide the necessary flexibility to manage the company's operations and long-term strategy more effectively as a private entity.
