Published October 29, 2009

Swissco shareholder to sell 54.75% stake

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SWISSCO International said yesterday that controlling shareholder Yeo Holdings Private Limited (YH) plans to sell all of its 54.75 per cent stake in the company to C2O Holdings for about $96.10 million.

According to the term sheet entered between the two parties on Oct 26, the proposed price is at 89 cents a share for all the 107.98 million shares. This is a 22 per cent premium over Swissco's net tangible asset value of 73 cents based on its published financial results as at June 30, 2009.

C2O is reviewing various ways to structure the proposed acquisition, including the payment.

The deal is conditional on satisfactory due diligence findings and C2O's application to the Securities Industry Council for the waiver of mandatory offer, among other issues.

The deal, if it goes through, will be the first takeover of a mainboard company by a Catalist-listed firm.