Published June 25, 2009

CK Tang delisting meeting on July17

By BRANDON CHEW

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CK TANG'S minority shareholders who oppose the company's delisting will be able to voice their grievances at an extraordinary general meeting (EGM) on July 17.

The Tang brothers, Wee Sung and Wee Kit, who together with parties acting in concert hold a total stake of 87.4% in the company have made an exit offer of $0.83 a share.

The retailing giant, which suffered a net loss of $5.62 million for the year ended March 31, announced yesterday that it would be convening the EGM to seek the approval of its shareholders to delist from the SGX.

This is the third attempt since 2003 at taking the company private.

The Tang brothers, Wee Sung and Wee Kit, who together with parties acting in concert hold a total stake of 87.4 per cent in the company, will vote in favour of the delisting resolution at the EGM.

The Tangs have made an exit offer of $0.83 a share.

The delisting and exit offer must be backed by at least 75 per cent of the total number of shares held by shareholders present and voting and must not be voted against by 10 per cent or more.

The closing date and time for the offer are July 31, 2009, at 5.30pm.

CK Tang closed yesterday at a price of $0.82 per share, implying that shareholders who choose to take up Tang UnityThree's exit offer would receive a 1.2 per cent premium.

This is substantially lower than the percentage premiums shareholders would have received had they taken up similar offers in 2003 and 2006.

Since the offeror and parties acting in concert already have a stake of 87.4 per cent, if they were to secure another 2.6 per cent or more of shares, shareholders other than the Tang family would account for less than 10 per cent of shares, removing their ability to prevent the delisting at the EGM.