Ms Qin Wei and hubby Ye Chen collectively own 64.18% of China Surveillance Video.
ANOTHER S-chip company has announced that its major shareholders are offering to buy out the rest of the shareholders in a bid to delist from the Singapore Exchange.
China Video Surveillance - which designs, develops and markets high-quality CCTV security and surveillance products and accessories - announced last night that All Legend Investments is offering 26.5 cents a share under a voluntary conditional cash offer.
That is a 140.9% premium over the last transacted price of 11 cents. Its market cap was a paltry S$6.7 million against a market cap of S$12.8 million during its IPO in May 2005.
All Legend Investments is an investment holding company incorporated in Hong Kong in Sept 09 for the purpose of the offer.
China Video Surveillance (www.yaan.com.sg) chairman and CEO Ye Chen, who owns 39 million shares of the company, or 64.02% of the issued share capital, is part of the consortium that is making the offer.
Mr Ye and his wife, Ms Qin Wei (sales & marketing manager), and several key executives who collectively own 73.86% of the company have given their irrevocable undertaking to accept the offer.
Giving the rationale for the delisting plan, the company (formerly known as Yaan Security Technology) said:
* Low liquidity of its shares
The trading volume of the Shares has been low, with an average daily trading volumeof approximately 13,273 Shares during the past 12 months.
* Lack of understanding and interest in the Company
The Company operates and generates most of its revenue in the PRC and has an extensive sales network in the PRC. The Offeror believes that local investors generally lack sufficient understanding of the business of the Company and there is not much interest in the trading of the shares.
China Video Surveillance said it is working towards a listing on a stock exchange in the PRC in the future.
In Dec 09, China Lifestyle Beverages Group announced that it was seeking to delist from the Singapore Exchange where it had its IPO in 2005.
The manufacturer of confectionary products, such as jelly, also cited low trading liquidity for its shares.
Recent story: CHINA LIFESTYLE: Saying goodbye to Singapore listing
