Meiban Group Ltd. CEO George Goh has offered to take over the contract plastics manufacturing company and delist it from the Singapore Exchange (SGX).
Goh and his family members own 30.17 percent of the Singapore-based injection molder, mold maker and prototyper, and have offered S$128.4 million (US$102.9 million) for the shares they do not hold.
The offer comes through British Virgin Islands-registered investment vehicle Zhong Yong Holdings Ltd., which would eventually take over Meiban.
The offer is a good opportunity for shareholders to realize their investment in Meiban, according to a joint Meiban and Zhong Yong statement filed with SGX.
The statement said the privatization of Meiban would provide greater flexibility to its management to promote efficiency and competitiveness through changes in strategy and investments.
Meiban ended 2011 with a 33 percent year-on-year drop in net profit to S$8.53 million (US$6.57 million) and a 19 percent decline in sales to S$341.46 million (US$262.9 million), which it attributed it to weak demand caused by the economic uncertainties in developed markets.