Low Keng Huat controlling shareholders launch delisting offer at S$0.72 a share

The cash offer price represents a premium of 17.1% over the last transacted price of S$0.615 per share

The majority shareholders of Low Keng Huat (Singapore) (LKH) have launched a voluntary conditional general offer to take the mainboard-listed construction and property developer private at S$0.72 per share.

The offer is being made through a special purpose vehicle, Consistent Record, which is effectively controlled by managing director Marco Low Peng Kiat and his family.

News of the offer pushed the company’s share price up by 17.1 per cent or S$0.105 to S$0.72 to match the offer price when the market opened on Monday (Dec 1).

The cash offer price of S$0.72 per share represents a premium of 17.1 per cent over the last transacted price of S$0.615 per share on Nov 28, 2025, the last full trading day before the announcement.

It also represents a premium of 45.2 per cent over the volume-weighted average price for the 24-month period up to the last trading date and exceeds the highest closing price of the shares in the five-year period before the announcement, the release read.

The offer is conditional upon Low receiving acceptances that would result in it holding not less than 90 per cent of the total voting rights, excluding shares already held by the offeror and its concert parties.

As at the announcement date, Low has a deemed interest of about 54.13 per cent of the company’s total shares.

The offer announcement said the company has no need for access to equity capital markets. LKH has not raised any funds from the Singapore equity capital markets since a rights issue in 2007.

“The offeror is of the view that the company is unlikely to require access to the Singapore equity capital markets in the foreseeable future,” the announcement read, noting that funding needs can be met through bank borrowings and debt financing.

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Low intends to delist the company to save on compliance costs and gain greater flexibility to manage the business amid a “challenging macro and operating environment”.

“The group’s three main business segments, namely, property development, the ownership and operation of serviced apartments and hotels, and property investments are capital-intensive activities that involve typically long gestation periods and significant risks,” the release read, noting the company’s irregular returns.

The group recently reported a steep decline in financial performance for the first half of FY2026, with revenue plunging 85 per cent.

The formal offer document will be dispatched to shareholders between 14 and 21 days from the announcement date of Nov 28, 2025.

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