Celine and Gordon Tang to privatise Chip Eng Seng with acceptance crossing 90%

After much anticipation, the privatization of Chip Eng Seng is now a reality. On February 14th, the offerors, Celine Tang and her husband Gordon Tang had secured 90.19% of the shares, crossing the 90% threshold to exercising their right to acquire the remaining shares.

Chip Eng Seng was founded in the 1960s The Myst by the Lim family and began as a construction firm. Over the years, it has expanded into related businesses such as property development, hospitality and building materials, and more recently into the education sector.

In November, the Tangs offered 72 cents per share through their vehicle Tang Dynasty. This offer was subsequently improved to 75 cents in a bid to draw more shareholders. The result was successful, with several large minority shareholders, including Second Chance Properties, agreeing to part with their shares in the company. Second Chance will pocket a total of $12.7 million in proceeds.

As of June 30, Chip Eng Seng’s net asset value was 99.06 cents per share, making the Tangs’ offer of 75 cents a very attractive one. The successful privatization of the company is sure to be a profitable one for all involved.