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Lizhong Wheel Group Receives Offer For Entire Shareholding From Berkley International
Daily Bulletin | 22 September 2015
By:

Lizhong Wheel Group has received a voluntary conditional cash offer from Berkley International’s for its entire shareholding.

Berkley has offered $0.50 in cash for each offer share, and as of 21 September 2015, the total number of shares owned by Berkley amount to an aggregate of 218,971,299 shares, representing approximately 93.2 percent of total number of issued shares of the group.

Berkley made the offer at a significant premium of 96.1 percent to the last transacted share price of $0.255 on 6 August 2015 with the view of delisting the group from the SGX, and believes that privatizing the group will provide more flexibility to manage the business, optimize the use of its management and capital resources and facilitate implementation of any operational change.

Due to the low trading volume of the group, with an average daily trading volume of approximately 23,460 during the 1-month period up to the last trading day, the premium offer provides shareholders who find it difficult to exit the group with an opportunity to liquidate and realize their investment.

Berkley has no current intentions to make any major changes to the group’s existing business or to redeploy the fixed assets of the group. Berkley will also retain the employment of the existing employees.


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