No general offer by Sanion for NatSteel

No general offer by Sanion for NatSteel

The long lasting competition for the takeover of Singaporean steel producer NatSteel has seen new developments yesterday. 98 Holdings raised its offer to S$2.05 per share from S$2.03 per share and extended its offer validity until December 23, 2002. This increase brought 98 Holdings offer to the same level with Sanion offer. There will be no further validity extension by 98 Holdings as this is date is the expiration of 60 days from the date of its initial offer. NatSteel shareholders, who accepted 98 Holdings offer in the voting held earlier, are entitled to receive the revised offer. NatSteel shares of 98 Holdings is currently at 29.70% while Oei Hong Leong holds 29.79%. However, Oei Hong Leong announced that his firm Sanion Enterprises does not have the intention to make a general offer for the takeover. Oei Hong Leong requested to convene Extraordinay General Meetings aiming to expand the board of directors by nine new directors and to vote on a proposed cash payout of S$ 1.55 or an amount to be proposed by the new management. 98 Holdings on the other hand has as many shares as Sanion and therefore has the equal rights. Furthermore, Saion must watch not to pass the 30% threshold not to make a general offer whereas 98 Holdings is free to make further purchases at S$2.05 in the open market. Under the Takeover Code of Singapore, a 14 day notice has to be given prior to expiry of an offer for any changes to be made and as 98 Holdings offer expires on December 23, there are no further changes expected.