Hot stock: Chosen surges on potential takeover bid

SHARES of Chosen Holdings jumped 18.7 per cent on Wednesday as trading resumed after private equity firm Shaw Kwei & Partners announced plans to make a general offer for the plastic components company.

Chosen stock traded at 23.5 Singapore cents as at 12.35pm on Wednesday, up 3.7 cents from its previous close.

Chosen announced before trading resumed at noon that it would appoint a financial adviser.

Shaw Kwei, through a vehicle called Southshore, said on Tuesday that it plans to make a voluntary cash offer at 24 cents per share for Chosen, which it will delist if it gathers enough acceptances. The firm has already received irrevocable undertakings from five shareholders who hold a combined 50.99 per cent stake.