Singapore's offshore marine firm Otto Marine Ltd. said Wednesday that it has received an offer June 6 from British Virgin Islands-incorporated investment holding firm Ocean International Capital Ltd. (OIC) to delist the company from the Singapore Exchange (SGX).

RHB Securities Singapore Pte Ltd. (RHB), acting on behalf of OIC as its financial adviser, will make an exit offer comprising $0.17 (SGD 0.32) in cash to acquire all the issued ordinary shares held by Otto Marine's shareholders other than those shares owned, controlled or agreed to be acquired by OIC. RHB will also purchase all new shares as may be issued prior to the close of the exit offer. OIC does not intend to revise the price of the exit offer.

The proposal to delist Otto Marine will be subject to SGX's approval and the firm would convene an extraordinary general meeting to seek shareholders' approval.

Malaysian businessman Yaw Chee Siew is the sole shareholder of OIC, a special purpose vehicle incorporated for making the exit offer. Yaw is also a controlling shareholder of Otto Marine, holding approximately 61.2 percent of the company's total issued share capital.

Otto Marine said shareholders would realize a premium on their holdings if they accept the delisting proposal and the exit offer as this is at a price which may not otherwise be readily available. Meantime, OIC indicated that the plan would provide the Otto Marine management with greater flexibility to manage and develop its existing businesses while exploring opportunities without the attendant costs, regulatory restrictions and compliance issues associated with its listed status on the stock exchange.

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