SINGAPORE (EDGEPROP) - Celine Tang, Chip Eng Seng’s chairperson, and her husband Gordon Tang, are offering 72 cents to buy over more shares of the company they don’t already own.

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If they gain more than 90% of the shares, the Tangs will exercise their right to compulsory acquire all remaining shares and take the company private.

The Tangs now hold 38.23% of the company and Yang Chanzhen, Gordon’s mother, and Tang Jialin, the couple’s son, hold another 3.22% via an entity called Senz Holdings.

The offer price of 72 cents is a premium of 8.6% over the volume weighted average price of Chip Eng Seng shares over the past month.

As at June 30, the company’s book value was 99.06 cents per share.

Chip Eng Seng first announced back in Sept 7 about a “possible transaction” mooted by Celine Tang.

Shares of Chip Eng Seng has been gaining steadily before Sept 7, as the market acknowledges the improvements in the overall construction sector.

Chip Eng Seng shares closed Nov 24 at 72.5 cents, higher than the offer price of 72 cents.

According to the offerors, they are also owners of another property company SingHaiyi Group, and that there are “numerous” joint ventures between the two companies.

“Due to rising interest and inflation rates, the ongoing Covid-19 pandemic as well as geopolitical tensions ensuing from the ongoing Russia-Ukraine conflict, property developers in Singapore are operating in a challenging environment,” the offerors state.

“On the back of the macro headwinds, the offeror believes that this offer will provide the offeror with greater control to manage the overall business, optimise and streamline the resources to improve operational efficiency and effectiveness.”

This article first appeared on The Edge Singapore.