bidding-war-wages-over-straits-trading

Bidding war wages over Straits Trading

Tecity Group increases its offer for the Singaporean company, valuing it at $1.5 billion, a 12.8% increase over the competing Lee Latex offer. Minority shareholders push the share price up.

By Sameera Anand

January 28, 2008

The Tecity Group has increased its offer for Singapore-listed Straits Trading to S$6.50 $4.71 per share, increasing by 12.8% the S$5.76 that Oversea-Chinese Banking Corporation offered on behalf of Lee Latex. At the higher price, Tecity has valued the target at S$2.1 billion $1.5 billion.

Straits Trading is an investment holding company with subsidiaries engaged in mining, smelting, property and financial investments. Its smelting business is housed in a subsidiary called Malaysia Smelting.

Straits Trading has been a takeover target since January 6 when Tecity, through its investment vehicle, Cairns, tabled an offer to buy out the minority shareholders at S$5.70 per share. This offer valued the target at S$1.86 billion $1.3 billion....

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