Controlling shareholder takes Rotary Engineering private as takeover offer declared unconditional

Rotary Engineering
Rotary Engineering website

Engineering services firm Rotary Engineering's controlling shareholder, the Chia family group, has succeeded in taking the mainboard-listed company private.

The takeover offer of 46 Singapore cents per share made by Orochem, which is 64.7 percent owned by the Chia family members while remaining is held by Oman Investment Fund, was declared unconditional following a shareholder vote on Wednesday.

The offer got approval at the company's extraordinary general meeting and the proposal was "duly passed by the shareholders in accordance with the requirements" of the listing rules.

Orochem will hold 73 percent of Rotary Engineering post the takeover.

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Rotary Engineering is run by the Chia family group, with Roger Chia Kim Piow as chairman, his brother Chia Kim Chua as executive director, and his spouse Jenny Wong as non-executive director.

Another major shareholder Oman Investment Fund is an investment arm of the Oman government.

In a statement in October last year, Rotary Engineering said the delisting would allow management "greater operational flexibility to manage the business of the company, optimise the use of its management and capital resources, and facilitate the implementation of any operational change".

The company offers fully integrated engineering design, procurement, construction and maintenance (EPCM) services to the oil and gas, petroleum, petrochemical and pharmaceutical industries internationally.

The exit offer will remain open for acceptance until January 24.

This article was first published on January 11, 2018