Bid to take Eu Yan Sang private at $0.60 a share

A consortium led by private-equity fund Tower Capital, Temasek Holdings unit Blanca Investments and Eu Yan Sang International's group chief executive Richard Eu has launched a bid to take Eu Yan Sang private.

The consortium is offering $0.60 for each share in the mainboard-listed firm it does not already own, it said in a Singapore Exchange filing released shortly after midnight on Sunday.

The offer price values Eu Yan Sang, which sells traditional Chinese medicine, at about $269 million.

Tower Capital owns 42 per cent of the offeror, Blanca holds 30 per cent and Mr Eu controls the remaining 28 per cent of the consortium, which also includes several other members of the Eu family.

The consortium, a special-purpose vehicle called Righteous Crane Holding, said the offer will go through if it and its concert parties receive enough valid acceptances such that they control more than 50 per cent of Eu Yan Sang.

As at the offer date, it controlled about 30.656 per cent of the group, mainly via the Eu family members, it added.

It said it had irrevocable undertakings to accept the offer from shareholders controlling about 63.2 per cent of the company.

This includes a 10.651 per cent stake held by Aberdeen Asset Management Asia and 1.596 per cent held by First State Investment Management (UK).

The consortium said if the free float falls below 10 per cent, it does not intend to keep Eu Yan Sang listed.

The offer price is final and excludes the interim dividend of 2.5 cents per share that the company announced on May 15, it added.

Tower Capital founder Danny Koh said in a press release that the consortium's acquisition of the company "will allow the new investors to partner with the participating Eu family shareholders in their efforts to invigorate the company's businesses".

UOB Venture Management is one of the investors in Tower Capital.

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