A group of investors including the controlling shareholder of Cosmosteel Holdings is offering 20 cents per share for the mainboard-listed piping steel supplier.

The offer is made via an entity called 3HA Capital, whose shareholders include Hanwa Co, a Tokyo-listed trader of steel and other materials which now owns 31.61% of Cosmosteel. Other parties in the offeror include HHH Group, Bursa-listed AYS Ventures Bhd and Thor Capital.

The offer price of 20 cents is 48.1% over the last traded price of 13.5 cents on May 14. However, it is a discount to the company's NAV of 29.31 cents as at March 31.

"The offer presents shareholders with a clean cash exit opportunity to realise their entire investment in the shares at a premium over the historical traded prices of the shares without incurring brokerage and other trading costs," reads the offeror's announcement on May 15.

The offeror says it plans to continue to develop and grow Cosmosteel's existing businesses and will undertake reviews from time to time to consider options.

Cosmosteel was listed on SGX back in 2007 and has been included in the SGX watch-list since 2018 for incurring losses in the three preceding financial years. SGX has given Cosmosteel up to June 4 to exit the watch-list.

If the offeror receives more than 90% of the shares, it might then exercise the right to compulsorily acquire the remaining shares and to then delist the company.

In the meantime, the offeror plans to maintain Cosmosteel's listing status.