Shares of Singapore-listed Japanese restaurant group RE&S Holdings Limited (Catalist:1G1) soared on May 20, a day after it announced it had received a privatisation proposal from Euphoria Investments, a special purpose vehicle managed by private equity firm Southern Capital Group (SCG). Shareholders who accept the offer can either opt for a cash payout of 36 cents a share, or a combination of 33 cents a share in cash and 0.083143 new share in the special purpose vehicle. The offer is made by way of a scheme of arrangement.

The offer represents a 56.5% premium to the last traded price of 23 cents or 50% to the three-month volume-weighted average price up to May 13. It also represents a 45.2% premium to the six-month volume-weighted average price up to May 13, and is priced at more than two times the company's audited net asset value per share as at June 30, 2023. In a statement, RE&S said Euphoria plans to leverage SCG's expertise, resources and network to accelerate the F&B company's growth trajectory, capitalise on emerging opportunities and strengthen its market position.

?The offeror believes that the privatisation of the company will provide the business with the necessary flexibility to focus on long-term execution whilst helping it save costs and resources associated with maintaining its listed status,? the company added. It noted that the trading volume of the stock had been low for at least the past 12 months.

Major shareholders Hiroshi Tatara, Yek Hong Liat John, Foo Kah Lee and Lim Shyang Zheng have given an irrevocable undertaking to the offeror to vote in favour of the scheme at a forthcoming meeting. Their combined holdings represent about 84.1% of all outstanding shares.