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Kuok makes cash offer to take POSH private

The Kuok Group has launched an offer to acquire all of the issued and outstanding ordinary shares of Singapore-listed PACC Offshore Services Holdings (POSH).

The voluntary conditional cash offer is being made via Quetzal Capital, a bid vehicle formed by certain members of the Kuok group of companies, namely Kuok (Singapore) Limited, Kuok Brothers’ wholly-owned Trendfield Inc., and Kerry Holdings’ wholly-owned Merry Voyage.

The offer price is SGD0.215 ($0.158) in cash per share, representing a premium of approximately 97.2% over the last traded price on 30 October 2019 on the Singapore Exchange (SGX).

Quetzal Capital said the offer price is final and there is no intention to revise the offer price.

“The offer presents shareholders with a unique cash exit opportunity to realise their entire investment in POSH at an attractive premium over prevailing trading prices without incurring brokerage and other trading costs,” Quetzal Capital announced.

“The offeror is making this offer in view of the continuing challenges in the global offshore oil and gas sector, as it believes that privatising POSH will provide it with more flexibility to manage POSH’s operational and funding requirements, and also optimise the use of POSH’s resource,” it stated.

The offer will be conditional on the offeror having received no less than 90% of the total number of shares in issue at the close of the offer.

Quetzal Capital said it has secured irrevocable undertakings in respect of approximately 75.03% of shares in issue from Kuok (Singapore) Limited and its wholly-owned subsidiary Camsward.

OCBC is the financial adviser to Quetzal Capital for the offer.

OSV operator POSH has a fleet of than 120 vessels and it was listed on SGX in April 2014 at an IPO price of SGD1.15.