Innovalues receives S$331.4m takeover offer from private equity firm Northstar

Singapore-listed Innovalues, which specialises in the manufacturing of customised precision machine parts and components, has received a S$331.4 million takeover offer from Singapore-based private equity group Northstar. (Straits Times News)

The offer is for S$1.01 in cash per share via a scheme of arrangement. The offer price represents a premium of 30.5 per cent to the 12-month volume weighted average price (VWAP) of Innovalues shares to April 6, that being the last trading day prior to the date on which the company informed shareholders of a possible transaction

The offer comes from Precision Solutions Ltd, an indirect wholly-owned subsidiary of Northstar Equity Partners IV Ltd, which is an investment fund advised and managed by Northstar Advisors Pte Ltd, the parties said in a joint statement on Wednesday (Oct 26).

Instead of accepting S$1.01 cash per share, Innovalues shareholders can opt for one share of Precision Solutions Group (the parent company of Precision Solutions Ltd) and S$0.61 in cash per Innovalues share. This option is subject to a limit of 65 million Innovalues shares. Said Innovalues chairman Goh Leng Tse: “We strongly believe in the merits of this transaction, and are pleased to present it for our shareholders’ consideration. This represents an opportunity for them to realise their investments.”

Mr Goh, Mr Pung Tong Seng, Mr Ong Tiak Beng and Mr Koh Boon Hwee, who together hold about 39 per cent of total Innovalues shares, have undertaken to vote in favour of the offer. As the offer is via a scheme of arrangement, it must be approved by a majority of shareholders in attendance at the vote meeting, who must hold at least 75 per cent of the total value of shares held by those present at the meeting or by proxy. A shareholder meeting will be convened pursuant to an order of the High Court of Singapore, which must approve the share scheme.