19m shares traded as stock rises 10.6% to match historical high of 26 cents

 

SHARES in Time Watch Investments sprang to life yesterday on news that its chairman and chief executive officer is making a voluntary offer to take the company private at 27 cents a share.

 

The stock of the China-based watch manufacturer closed 10.6 per cent or 2.5 cents up to match its historical high of 26 cents with volume to boot. It hit an intraday high of 26.5 cents.

More than 19 million shares changed hands compared with an average daily trading volume of about 719,000 shares over 12 months.

CEO Tung Koon Ming has proposed the exit offer through his investment holding company Red Rewarding Limited.

Time Watch's low trading volume, coupled with the desire for more flexibility in running the business, were among the reasons cited for the voluntary delisting.

The 27 cents per share offer represented a 14.89 per cent premium over Time Watch's closing share price of 23.5 cents on Jan 18, the eve of the offer announcement. Compared with the one-month, three-month and half-year volume weighted average prices, the offer is 27.96 per cent, 35.68 per cent and 39.18 per cent higher respectively.

'The exit offer will provide a unique exit opportunity for those shareholders who wish to realise their entire investment in the shares but find it difficult to do so as a result of prolonged undervaluation and the low trading liquidity of the shares,' a joint announcement by Time Watch and the offeror said.

Red Rewarding has already received irrevocable undertakings from controlling shareholders of Time Watch, representing a stake of 62.12 per cent.

The delisting is subject to the approval of the Singapore Exchange (SGX). The delisting resolution also needs to have support representing at least 75 per cent of the issued shares held by shareholders present and voting at an extraordinary general meeting.

Likewise, votes against must not represent 10 per cent or more of the shares.

Meanwhile, Time Watch has appointed SAC Capital Private Limited as the independent financial adviser.

Time Watch is the latest to ride the privatisation wave on the SGX in recent months. MCL Land, which has been floated here since 1967, got the go-ahead for delisting last November after shareholders accepted the buyout offer from major shareholder Hong Kong Land.