Pacific Shipping Trust (PST): Spore’s first shipping trust to list, may soon become the first one to delist as well.
Holdco Pacific Int’l Lines (PIL) has proposed to take the trust private. PIL plans to streamline the structure of the PST group. Low trading liquidity and the high DPU yield hindering new acquisitions were other reasons cited for the privatization.
PIL will offer 43 US cts cash /sh, a 14.7% premium over the last-traded price of 37.5 US cts. PST listed in 2006 with an IPO price of 45 US cts.
The proposed privatisation hinges on the delisting resolution being approved by at least 75% of the total number of issued units held by the unitholders present and voting at an EGM. Also, the resolution cannot be opposed by 10% or more of the same such units.
Under the proposed voluntary delisting, the minimum acceptance condition is for PIL to end up holding a stake of at least 75% in the trust. Currently, PIL holds ~59.19%. Subject to the regulator’s consent, the offeror has the right to waive this condition.
The other two shipping trusts in Singapore have also seen their unit prices take a beating. Rickmers Maritime's units have fallen 21.8% yts to 30.5 cts. It had listed at an offer price of $1.57.
First Ship Lease Trust's units have shed 44% since January. They last traded at 26 cts, against their IPO price of $1.50.
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