The Santosa family which controls agri-food company Japfa is making an offer of 62 cents per share to privatise the company, which runs chicken and pig farming operations in Indonesia and Vietnam.
The offer is made to public shareholders who hold 18.33% of the shares.
Other related parties who control Japfa shares via other entities are excluded from the offer.
The offer price of 62 cents is at a premium over Japfa's shares over the past four years.
The company had on Jan 16 flagged about this possible deal.
Japfa was listed back in 2014 at 80 cents. Its share price has seen its share of swings in line with the company's earnings, which is regularly affected by market dynamics and currency fluctuations.
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According to the offerors, the scheme is an opportunity for the other shareholders to realise their investment at a premium to prevailing market prices.
"The joint offerors believe that privatising the company will provide the joint offerors and the company’s
management with greater flexibility to manage and grow the existing business of the company.
"This will allow the company to pursue longer-term business strategies which may otherwise contrast or conflict with the shorter-term expectations of the public market," the offerors add.
DBS Bank is the sole financial adviser to the offerors and W Capital Markets has been appointed as the independent financial adviser.
Japfa shares closed at 53 cents on Jan 24.
