Sim Lian founder offers to take over Singapore real estate firm

In a deal that values the company at $808.2 million

The founder of Sim Lian Group Ltd is leading an offer to buy the Singapore-based real estate firm and delist it, in a deal that values the company at S$1.09 billion ($808.2 million).

Coronation 3G, an investment holding company led by Sim Lian founder and Executive Chairman Kuik Ah Han, has offered S$1.08 for each share, representing a premium of 15 per cent to the stock's last closing price of S$0.94.

Sim Lian would become the latest among a growing number of Singapore companies which are going private.

Coronation 3G has secured irrevocable undertakings representing about 80 per cent of the issued shares from Kuik's Sim Lian Holdings and individuals from the Kuik family, it said in a statement late on Monday.

"The shares have not traded at or above the offer price since its listing in 2000. Coronation 3G believes that the offer presents SLG shareholders with a compelling cash exit opportunity given the illiquidity of its shares," it said.

Oversea-Chinese Banking Corp Ltd is the financial adviser to Coronation 3G in the offer.

($1 = 1.3487 Singapore dollars)