GP Industries, a developer and seller of batteries, said it intends to make a voluntary conditional cash offer of S$205.6 million for shares in GP Batteries International that it does not already own.
GP Industries, which holds about 65 interest in GP Batteries International, has made an offer price of S$1.30 per GP Batteries share, representing a premium of 61.1 percent and 61.5 percent above the six month and 12-month volume-weighted average price, respectively.
GP Industries is the main industrial investment vehicle of Hong Kong-listed Gold Peak Industries, which holds about 85 percent interest in GP Industries.
GP Industries said the trading volume of GP Batteries shares on the SGX has generally been low.
"The offeror is of the view that the low trading volume of the shares on the SGX-ST may not provide Shareholders with sufficient opportunity to efficiently exit their investments in the company, it said in a statement.
The company also intends to delist the company and streamline the organisational structure of GP Batteries and its subsidiaries.
Oversea-Chinese Banking Corp is the financial adviser to GP Industries in connection with the offer, the company said.
GP Batteries has requested for a trading halt on its shares, which last traded at S$0.80. The company has a market capitalization of about $126 billion.