StanChart PE-backed THSC seeks to privatise SGX-listed Tat Hong for $286m

Tat Hong
Visual from Tat Hong's website

Singapore-listed crawler crane rental company Tat Hong could become a private firm if the S$376.6-million ($286 million) voluntary conditional cash offer of THSC Investments pushes through.

THSC Investments, owned by Standard Chartered Private Equity (SCPE) and TH60 Investments, has made an S$0.50 per share pre-conditional cash offer for all the shares of Tat Hong. The deal will be financed through borrowings from financial institutions.

TH60 is a special purposed vehicle owned by Tat Hong’s CEO Roland Ng.

“The offer represents an opportunity for shareholders to exit their investments in Tat Hong,” according to an announcement.

The delisting of the crane company also frees up management time and resources and provides more flexibility to manage the business, the company statement added.

The offer is now conditional on THSC holding not less than 90 per cent of the shares at the close of the offer. The offeror has since secured irrevocable undertakings representing 66.82 per cent of the shares.

THSC Investments earlier said it does not intend to make major changes to Tat Hong’s business or its deployment of fixed assets for now, beyond the ordinary course of business.

With a fleet size of more than 1,500 crawlers, mobile and tower cranes ranging in size from under 50 tonnes to 1,600 tonnes, Tat Hong ranked, in terms of aggregate tonnage, the largest crane-owning company in the Asia-Pacific region and ninth worldwide.

It also owns the second largest tower crane fleet in China. The company operates in Southeast Asia, Australia, and China.

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