Amos Group loses free float, extends offer closing date to November 21

OFFSHORE oil and gas equipment maker Amos Group said on Tuesday (November 5) it has lost its free float and plans to extend the deadline for shareholders to accept the offer made by its controlling shareholder.

The September group received a general voluntary unconditional offer of S$0.07 cents per share in cash from its controlling shareholder PeakBayou, a Hong Kong-based private equity fund of ShawKwei & Partners, which is in turn majority-owned by Amos Group executive chairman Kyle Arnold Shaw.

As of Tuesday, nearly 91.1% of Amos Group’s shares are owned, controlled, acquired or agreed to be acquired by PeakBayou and its joint venture parties.

This includes about 16.4 million shares, representing about 7.9% of the group’s shares, which accepted Tuesday’s offer.

As the offeror and the parties acting jointly hold more than 90% of the shares, trading of the Amos Group shares may be suspended by the Singapore Exchange Securities Trading upon completion of the offer as it no longer meets the free-float requirement. .

The requirement refers to an issuer having to ensure that at least 10% of the total number of shares issued are held by the public.

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The offer document previously stated that PeakBayou does not intend to retain the listing status of the Amos Group and does not intend to take steps to resume trading in its shares.

The announcement also said that the closing date for the offer had been extended to 5.30pm on November 21, from the original date of November 7.

The takeover offer of $0.07 per share represents a premium of approximately 32.1% to Amos’ last traded price of $0.053. It also represents a 55.6% premium to the volume-weighted average price (VWAP) per share for the one-month period preceding and including the last trading day.

The cash consideration represents approximately 59.1%, 55.6% and 42.9% premiums to Amos’ VWAP per share over the respective three-month, six-month and 12-month periods, respectively.

When the offer was launched, PeakBayou noted the low trading volume of the company’s shares on the Singapore Stock Exchange and said the cash consideration would give shareholders an opportunity to liquidate and realize their investment at a premium to prices from the market.

Shares of Amos Group closed up 1.4%, or $0.001, to $0.07, ahead of the announcement.