| The ongoing takeover offer for CosmoSteel Holdings by 3HA Capital is heading into its final days, unless the 28 July closing date is extended. Launched in May 2025 at an initial S$0.20 per share, the offer was revised to a final S$0.25 per share in June—a 25% jump. As of yesterday (July 23), the offeror has secured valid acceptances for nearly 229 million shares, equating to 87.88% of the total number of voting rights of CosmoSteel, a distributor of steel productss. This is a strong showing but falls short of the 90% threshold needed for compulsory acquisition, where 3HA Capital can force the sale of remaining shares. The Offeror has confirmed that this is its final offer, and it does not intend to revise the Final Offer Price. |
Significant resignations in senior management of Cosmosteel have taken place after they accepted 3HA Capital's offer for their shares.
On July 11, 2025, CEO and Executive Director Ong Tong Hai resigned, and is serving his notice period until December 31, 2025, to ensure a smooth handover.
Other key roles, like the Head of Business Development and Strategy Planning, have also seen cessations recently.
If the 90% mark isn't hit by closing, with the offeror already holding a super majority, the company's public float is looking very limited, leading to poor trading liquidity.
Remaining shareholders could struggle to offload shares at a fair price, which could trade down to historical levels which are much lower than the 25-cent offer price.
Lim & Tan Securities has advised investors to accept the 25 cent final offer, noting that it sits within the IFA’s fair value range and only slightly below the company’s historical net asset value of 29 cents per share.
The Offeror has stated its intention to privatize and delist the Company if conditions allow.
