The Family Members of Japfa’s Founder Seek to Take the Company Private
Japfa, an agri-food company, has announced that the family members of its founder are looking to take the company private through a scheme of arrangement. The offer price of S$0.62 per share represents a 34.8% premium to the counter’s last traded price on January 15 and a 12.7% premium to the company’s net asset value per share as of September 30, 2024.
Key Details of the Offer
The joint offerors, Renaldo and Gabriella Santosa, and Rachel Anastasia Kolonas, are acquiring around 18.3% of the total issued shares of Japfa through their special purpose vehicles, TAC 1 and TAC 2. The offerors are siblings Renaldo and Gabriella Santosa, who are children of Japfa’s former executive chairman, Handojo Santosa.
Benefits of the Privatisation
The company believes that the privatisation will provide shareholders with an opportunity to realise their investment at a premium to prevailing market prices, which may otherwise be difficult due to the low trading liquidity of the shares. Additionally, the company will have greater flexibility to manage and grow the business, focus on its core operations, and save on expenses related to maintaining its listing.
Shareholders’ Response
Shareholders holding around 4.4% of Japfa’s shares have provided irrevocable undertakings to vote in favor of the scheme. These shareholders include Japfa’s chief executive, chief financial officer, Great Alpha Investments, and Great Delta Investments.
Conclusion
The privatisation offer by Japfa’s founder family members presents a unique opportunity for shareholders to exit their investment at a premium price. The move is expected to provide the company with greater flexibility to manage its business and achieve its long-term goals.
Frequently Asked Questions
Q: Why is Japfa’s founder family seeking to take the company private?
A: The offerors believe that the privatisation will provide greater flexibility to manage and grow the business, and allow the company to focus on its core operations.
Q: What is the offer price for Japfa’s shares?
A: The offer price is S$0.62 per share, representing a 34.8% premium to the counter’s last traded price on January 15 and a 12.7% premium to the company’s net asset value per share as of September 30, 2024.
Q: Who is acquiring the shares?
A: The shares are being acquired by Renaldo and Gabriella Santosa through their special purpose vehicle, TAC 1, and Rachel Anastasia Kolonas through their special purpose vehicle, TAC 2.
Q: What is the current shareholding structure of Japfa?
A: The special purpose vehicles holding the Santosa and Kolonas families’ investment in Japfa are currently holding 81.7% of the company’s total issued shares.
