Cosco’s takeover bid for SG’s Cogent hits 90% mark
Beijing-headquartered Cosco Shipping International (Singapore) has hit the 90 per cent mark for compulsory acquisition for its S$1.02-a-share offer for Singapore-listed logistics management service provider Cogent Holdings (CHL). In an exchange filing on Thursday, Cosco said, “As stated in the offer document, if the offeror succeeds in garnering acceptances exceeding 90 per cent of the total number of shares (excluding treasury shares), thus causing the percentage of the total number of shares (excluding treasury shares) held in public hands to fall below 10 per cent, the SGX-ST will suspend trading of the listed securities of CHL at the Closing Date”. It added that the offeror, which is China’s biggest container carrier, intends to privatize CHL and does not intend to maintain the listing status.
As at 5 PM on Thursday, Cosco had received over 27.19 million valid acceptances of the offer, representing approximately 5.68 per cent of the total number of shares. It also received irrevocable undertakings to accept the offer on or before 3 January 2018 from the undertaking shareholders in respect of over 403.5 million shares, representing about 84.33 per cent of the shares. The four undertaking shareholders were Tan Yeow Khoon, Tan Yeow Lam, Tan Min Cheow, Benson and Ng Poh Choo. In November, Cosco Shipping had announced that it will acquire Cogent for S$488.07 million in a bid to acquire control of one of leading full service, integrated logistics service providers. Later, CIMB, which was appointed by Cogent as an independent financial advisor, had said that the offer price was “fair and reasonable” under prevailing conditions and Cogent’s shares have not traded at or above the offer price in the past three years. This acquisition follows Cosco’s earlier buyout in July where it agreed to buy Hong Kong’s Orient Overseas International Ltd. for $6.3 billion in cash, creating the world’s third-largest container-shipping company.
Source: Deal Street Asia