Avarga (SGX:X5N) received a privatization offer from TKO for the acquisition of the company's entire issued and paid up shares via a scheme consideration of SG$2.7 per share in cash or a combination consideration at SG$2 per share in cash plus 1 redeemable preference share.

The SG$2.7 per share cash offer is a 14.9% premium over the last traded price.

The reason for the offer is to provide the shareholders an exit opportunity and to reduce the regulatory burdens.

The offeror has already secured an irrevocable undertaking from Phileo Capital which has a 24.75% stake in the company,

TKO currently has a 53.77% stake in the company, while Genghis has an 8.09% stake.

All three entities are ultimately owned by Phileo Trust, whose sole beneficiary is the company's executive director, Tong Kooi Ong.

Shares of the distributor of building materials and portfolio investment company surged nearly 13% in Friday trading.