Singapore-listed offshore vessel provider Otto Marine has finally revealed the identity of the company aiming to take over its business.
A week after it was first reported that Otto has been deemed a takeover target by a company advised by RHB Securities Singapore, Otto Marine on Wednesday revealed that the company in question is Ocean International Capital Limited.
The offeror is a special purpose vehicle incorporated in the British Virgin Islands for the purposes of making the Otto Marine offer. Worth noting, Ocean International Capital Limited is run by Yaw Chee Siew, who is at the same time the Executive Chairman of Otto Marine. According to Forbes, he is one of Singapore’s richest people.
Ocean International Capital Limited has offered a proposal to seek the voluntary delisting of Otto Marine from the Official List of the Singapore Exchange Securities Trading Limited.
Under the delisting proposal, RHB Securities Singapore Pte. Ltd., as the financial adviser to the offeror, will make, for and on behalf of the offeror, an exit offer in cash for all the issued ordinary shares held by shareholders of Otto Marine, and for new shares as may be issued prior to the close of the exit offer.
Ocean International Capital Limited is offering 0.32 Singapore dollars in cash for each offer share. Otto Marine has an issued and paid-up share capital of 212,354,622 Shares.
The company is offering cash for shares not currently owned by Yaw Chee Siew, as he already has a total interest in 129,960,353 shares, representing approximately 61.2% of the total issued share capital of Otto Marine.
Cost saving move
Providing rationale for the move, the offeror said that the delisting of the company would provide the management with greater flexibility to manage and develop the existing businesses of Otto Marine, while exploring opportunities without the attendant costs, regulatory restrictions and compliance issues associated with its listed status on the SGX-ST.
Furthermore, delisting is expected to deliver cost saving for Otto Marine, as it will eliminate costs incurred from maintaining the company’s listing status.
“As a non-listed entity, the company will be able to achieve cost-savings by dispensing with costs associated with complying with SGX-ST listing requirements and other regulatory requirements as well as management’s time and human resources that have to be committed for such compliance,” reads a joint statement by the offeror and Otto Marine.
There are no current plans by Ocean International Capital Limited. to make material changes to Otto Marine’s existing business or re-deploying its fixed assets.
Listed at SGX-ST since 2008, Otto Marine is principally engaged in vessel construction, repair and conversion, fabrication, chartering, management and leasing of vessels as well as subsea activities.