A takeover bid for Singapore-based Eu Yan Sang has valued the traditional Chinese medicine retailer at about S$269 million (US$196 million).
A consortium comprising Singapore state investment company Temasek Holdings’ unit Blanca, Tower Capital TCM Holdings and some members of the founding Eu family have made the final offer of 60c Singapore a share.
About 63.2 per cent of shareholders have committed to accept the offer, including members of the Eu family, Aberdeen Asset Management Asia and First State Investment Management (UK), says Eu Yan Sang.
Tower Capital founder Danny Koh says the consortium’s offer is attractive “considering the company’s recent financial performance and the current challenging environment”.
Eu Yan Sang launched in Malaysia in 1879, expanding to more than 250 outlets in China, Hong Kong, Macau and Australia.
Its third-quarter net income slumped to S$286,000 from S$5.45 million a year earlier, and its slide became evident in August when it lost US$3.6 million.