VST announces unconditional cash offer for illiquid ECS shares

Price is at $0.68/share.

Last Friday night, ECS announced that VST Holdings Limited (“VST”), which has 89.5% shareholdings in ECS, intends to make an unconditional cash offer of S$0.68/share for all the remaining ordinary shares it does not currently own.

According to OCBC, the offer by VST presents a good opportunity for investors to exit the illiquid market for ECS shares at a premium to the traded price on 22-Sep (last trading date prior to suspension). 

Furthermore, VST does not intend to take any steps to restore public float to lift the suspension of trading. Hence, with the offer price of S$0.68/share meeting OCBC’s FV estimate, OCBC thinks the offer is fair and recommends shareholders to accept the offer.