Rotary Engineering receives delisting offer for $261m

Its family group wants to increase flexibility in its operations.

Rotary Engineering Limited (REL) received an offer of to delist for $216m or 46 cents per share.

According to a press release, the offer came from its executive chairman and the family group OROCHEM PTE. LTD (OROCHEM).

KGI said the exit offer price represents a premium of 25% over the volume weighted average price (VWAP) of 36.8 cents for the three-month period up to Friday.

Meanwhile, OROCHEM said the delisting will provide an opportunity for shareholders to realise their investments in REL.

The delisting will also serve as an exit option for those who find it difficult due to the low trading liquidity of the shares.

OROCHEM also said it will allow "greater operational flexibility" in the management of the company.