This comes after Ennoconn had in September agreed to buy 53.38% of the mainboard-listed company
A MANDATORY unconditional cash offer by Taiwan-listed Ennoconn Corporation for Nera Telecommuniations (NeraTel) closed with valid acceptances for only 10.39 per cent of NeraTel’s listed shares on Wednesday (Oct 23).
As at the close of the offer at 5.30 pm, Ennoconn and its concert parties now own, control or have agreed to acquire 63.77 per cent of the communications and network solutions provider’s shares.
In September, the Taiwan-listed company had made an offer for all the shares in NeraTel it does not own at S$0.075 apiece. This comes after Ennoconn entered into a share purchase agreement with Asia Systems for the purchase of close to 193.2 million shares, or 53.38 per cent of the total number of shares in NeraTel.
Ennoconn, an electronics solution provider, wanted to acquire the mainboard-listed company to leverage the synergies between the two organisations, as well as optimise order acquisition and financial performance. The offeror said it intended to maintain the listing status of NeraTel.
In October, the Securities Investors Association (Singapore), or Sias, advised shareholders to reject the offer, which it deemed “not fair and not reasonable”.
Ennoconn’s offer price was a 6.3 per cent discount to the last transacted price per share on Sep 4, which was the last full day of trading before the announcement.
It was also a 5.1 per cent discount to the volume-weighted average price (VWAP) of the shares traded in the month prior to the offer, and a 3.8 per cent discount to the VWAP of the shares traded in the three-month period prior to the offer.
Shares of NeraTel closed at S$0.075 on Wednesday before the latest announcement.
