Biosensors

Biosensors: (S$0.81) CITIC makes cash offer in amalgamation move
Stent maker Biosensors shot up today to $0.81 (+16%) after CITIC Private Equity Funds made a cash offer of $0.84 to buy up the remaining shares of Biosensors, to facilitate the amalgamation with CB Medical Holdings, a substantial shareholder with a 19.6% stake.

Under the amalgamation agreement, shareholders of Biosensors will be entitled to choose between:
1) Cash payment of $0.84/share, OR
2) One non-assessable share of CBCH II, a special purpose vehicle set up to facilitate the amalgamation.

Shareholders who do not make the election would receive the cash option.

Biosensors is currently trading at a 3.6% discount to the cash offer price as the deal is subject to several key conditions, namely:
1) >75% acceptance by shareholders, other than CB Medical Holdings, at a special general meeting;
2) Completion of the amalgamation within a nine-month period;
3) Absence of any restraining regulatory orders on the amalgamation

At this point, substantial shareholders who have given their undertaking on the deal include Autumn Eagle and Ace Elect Holdings, both holding an aggregate 11.8% stake in Biosensors.

Upon completion of the amalgamation, Biosensors will become a wholly owned subsidiary of CB Medical Holdings and will be be delisted from SGX.

The cash offer is not far off from Biosensors' NAV/share of US$0.6113 ($0.8536), as at Jun '15.