Mary Chia shares jump on mandatory general offer
SINGAPORE: Shares of beauty and wellness firm Mary Chia Holdings jumped yesterday after a mandatory general offer for the company's shares was triggered.
At around 9.30am, the shares were 68.7 per cent higher at 11.3 Singapore cents, with some 1.4 million shares changing hands.
Yesterday, they closed at 11 cents - up 4.3 centsfrom Thursday. A total number of 3.75 million shares changed hands.
On Thursday, the Catalist-listed company announced that the daughter and son-in-law of beautician Mary Chia had bought out her company.
Their vehicle, Suki Sushi, paid $11 million for Madam Chia's 60.98 per cent stake or 11.1 Singapore cents a share in cash.
Suki Sushi and related parties now own 80.97 per cent of Mary Chia Holdings, triggering the mandatory general offer.
Their 11.1 cents offer price for the remaining shares is at a nearly 66 per cent premium over the company's last traded price of 6.7 cents on Wednesday, before a trading halt.
Suki Sushi operates Japanese restaurants in Singapore under various brands, including Momiji, Nihon Mura Kaiten and Sakura. It also offers food catering services and sells frozen and dry food products.
Madam Chia's daughter, Ms Ho Yow Ping, who holds a 21.7 per cent stake in the company, is also the chief executive of Mary Chia Holdings.
Ms Ho's husband, Mr Lee Boon Leng, has a 73.75 per cent stake.
The company said that following the acquisition, it will "undertake a strategic and operational review of the group's business with a view to strengthening the group's financial position and identifying areas in which potential may be optimised".
Mary Chia Holdings saw net losses of $5.7 million in the last financial year ended March 31.
It was in a negative working capital position of approximately $10.3 million as at March 31.- THE STRAITS TIMES