Popular Holdings

Popular Holdings: CEO Chou Cheng Ngok and his wife intends to take the company private via a voluntary cash offer by Grand Apex Pte Ltd at $0.32 per share, 39.1% premium over the last trading price, conditional upon minimum 90% acceptance that will allow Grand Apex to take exercise its right of compulsory acquisition. Apart from a bookstore chain with 163 stores in Singapore, Malaysia and Hong Kong, Popular is also in the businesses of publishing, property and education. Its property business is the motivation to the privatisation. Ei8ght Raja, a premium freehold condominium in Balestier, is 80% unsold and subject to penalty if it is unable to sell all its units by May 2015 when its qualifying certificate expires. Another luxurious freehold condominium development, Permai Residence, is on track for completion by end of this year, after which the 2-year selling period under the qualifying certificate will begin. Under current market conditions when potential private property buyers are mostly taking a wait-and-see approach, privatisation of the company – like SC Global did – to become exempted from the rule is probably the best choice. For shareholders, monetizing their illiquid shares at 86-month high is an attractive proposition. The CEO and his wife, both Singapore citizens, are the owners of Grand Apex, which already owns 61.25% of Popular Holdings.