Takeover bid of $196m. for Eu Yan Sang
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A takeover bid for Singapore-based Eu Yan Sang has valued the traditional Chinese medicine retailer at about S$269 million (US$196 million).
A consortium comprising Singapore state investment company Temasek Holdings’ unit Blanca, Tower Capital TCM Holdings and some members of the founding Eu family have made the final offer of 60c Singapore a share.
About 63.2 per cent of shareholders have committed to accept the offer, including members of the Eu family, Aberdeen Asset Management Asia and First State Investment Management (UK), says Eu Yan Sang.
Tower Capital founder Danny Koh says the consortium’s offer is attractive “considering the company’s recent financial performance and the current challenging environment”.
Eu Yan Sang launched in Malaysia in 1879, expanding to more than 250 outlets in China, Hong Kong, Macau and Australia.
Its third-quarter net income slumped to S$286,000 from S$5.45 million a year earlier, and its slide became evident in August when it lost US$3.6 million.
Questions & Answers
Q.Which entities are part of the consortium making the takeover bid?
Which entities are part of the consortium making the takeover bid?
The consortium comprises Blanca, a unit of Temasek Holdings, Tower Capital TCM Holdings, and several members of the founding Eu family. They have made a final offer of 60c Singapore per share.
Q.What is the primary reason given for the offer being considered attractive?
What is the primary reason given for the offer being considered attractive?
Tower Capital founder Danny Koh stated the offer is attractive considering Eu Yan Sang's recent financial performance and the current challenging economic environment for the company.
Q.How has Eu Yan Sang's recent financial performance been?
How has Eu Yan Sang's recent financial performance been?
The company's third-quarter net income slumped significantly to S$286,000 from S$5.45 million a year prior. It also lost US$3.6 million in August.