COSCO Shipping International (Singapore) has reached the required threshold to launch a compulsory purchase of all shares in compatriot logistics company Cogent Holdings Limited (CHL).
The shipping firm earlier made a voluntary conditional cash offer for all the issued and paid-up ordinary shares in the capital of CHL, including all shares owned, controlled or agreed to be acquired by parties acting or deemed to be acting in concert with the company.
On January 19, the company received valid acceptances to acquire over 470.4 million or 98.3 per cent of shares in the logistics firm. COSCO Shipping will now compulsory acquire all Cogent shares at the offer price of SGD 1.02 in cash. The offeror will then proceed to delist CHL from the SGX-ST.
In late December, COSCO Shipping entered into agreements for a 3-year term loan facility and a one-year term loan facility in the aggregate principal amount of up to SGD 350 million (USD 260.7 million) related to the purchase of Cogent shares.
The amount is expected to be largely used towards partially financing the offer, however, the company informed that the utilisation of the facilities remains subject to the conditions set out in the facility agreement.
Sea News, January 22