SG Dealbook: Tat Hong to go private in $283m deal; CWG note issue to fund M&As

Singapore skyline. Credit: CapitaLand.

Tat Hong is set to delist from the SGX in a privatisation deal while CWG International has subscribed to a promissory note to finance acquisitions.

Tat Hong considers privatisation offer

Roland Ng, the managing director of Tat Hong, which is reportedly the largest crawler crane rental company globally, is seeking to take the company private.

Ng and Standard Chartered Private Equity (Singapore) has made an S$0.50 per share pre-conditional cash offer for all the shares of the group, via takeover vehicle THSC Investments in a deal that values Tat Hong at S$377 million ($283.8 million). The deal will be financed through borrowings from financial institutions.

The transaction requires approval from the Australian Competition and Consumer Commission (ACCC).

Reasons cited for the delisting include low market liquidity, compliance costs and flexibility to manage the business.

CWG International unit invests $25m in US Hospitality Investments

CWG International’s wholly owned subsidiary, Chiwayland Group (S), has subscribed to a promissory note with a principal amount of $25 million issued by Delaware-incorporated US Hospitality Investments, LLC.

According to CWG International, the transaction will allow it to invest in an established business by way of debt financing. The note bears an interest rate of 10 per cent and will mature in 10 years.

CWG will utilise internal resources and an interest-free loan from controlling shareholder Sinway Investment to finance the subscription of the promissory note.

US Hospitality Investments holds hotel properties in the US while Urban Commons is an existing US joint venture (JV) partner of the CWG group. Investment proceeds will fund the acquisition of select hotel properties by US Hospitality.

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