Aug. 2 (Bloomberg) -- Cerebos Pacific Ltd., maker of the Brands essence of chicken, surged the most in more than 22 years after Suntory Beverage & Food Ltd. offered to delist the company in a transaction worth S$364.8 million ($293 million).
Suntory, which has about 82.6 percent of Cerebos, yesterday offered S$6.60 a share in cash for the remaining 55.3 million shares it doesn’t own in the Singapore maker of food products and health supplements. The price represents a 23 percent premium to the last traded price of S$5.38 on July 30.
“The delisting and exit offer will allow the company to realize cost savings by eliminating listing, compliance and other related costs,” according to a joint statement yesterday. As a non-listed company, “Cerebos will enjoy greater operational flexibility and efficiency in implementing its strategic initiatives.”
Cerebos jumped 22 percent to S$6.55, the biggest gain since March 1990.
The company has a total of 317.3 million shares and additional 2.5 million options granted to employees, according to the statement to the Singapore exchange.
Before the bid yesterday, Cerebos has climbed 8.5 percent this year, compared with the 15 percent advance in the Singapore benchmark Straits Times Index.
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