Patec Pte. Ltd. Edges Closer to Broadway Industrial Group Takeover Amidst Trading Suspension Warning

Patec Pte. Ltd., represented by United Overseas Bank Limited (UOB), has made significant strides towards acquiring Broadway Industrial Group Limited. As of December 20, 2024, Patec, along with its associates, has amassed control over approximately 91.90% of Broadway’s shares. This development follows a mandatory unconditional cash offer announced on October 28, 2024, with the offer becoming unconditional on November 14, 2024.

Key points of interest include:

• The Offeror, Patec, received valid acceptances for 223,112,057 shares, equating to about 48.81% of the total shares.
• Prior to the offer announcement, Patec and its associates already held a 43.09% stake in Broadway.
• With the current level of acceptance, Patec’s shareholding exceeds the critical 90% threshold, triggering significant consequences for the company’s public trading status.

Shareholders should be aware of the implications of this high level of acceptance:

• Under Rule 723 of the Listing Manual, with Patec controlling over 90% of shares, the free float requirement is not met, as less than 10% of shares are in public hands. Consequently, the Singapore Exchange Securities Trading Limited (SGX-ST) may suspend trading of Broadway’s shares.
• Patec has expressed no intention to restore the public float, potentially leading to a prolonged trading suspension and eventual delisting from the SGX-ST.

For dissenting shareholders, there are rights under Section 215(3) of the Companies Act. Those who oppose the takeover have the right to demand that Patec acquire their shares at the offer price. Legal advice is recommended for shareholders considering this option.

The offer remains open until 5:30 p.m. on December 23, 2024. Shareholders yet to accept should evaluate their positions promptly.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Shareholders and investors should seek professional advice before making investment decisions based on this information.