Pe40 in SSE is too attractive for them not to consider delisting and it needs a lot of resources and good will to achieve RMB10 billion revenue by 2016
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[Guest 27-11-2012]:
Pe40 in SSE is too attractive for them not to consider delisting and it needs a lot of resources and good will to achieve RMB10 billion revenue by 2016
May be it would push the price up n do a second trance TDR in Taiwan..
UNDER Singapore Exchange (SGX) listing regulations, a company can be delisted if at least 75 per cent of shareholders approve of the resolution.
Recently, Synear Food Holdings did just that and made an exit offer of 18.6 cents per share, which was less than half the net asset value of about 45 cents per share.
The independent financial adviser stated that the offer was "not fair" but "reasonable", and recommended that the directors approve the delisting.
I struggle to understand how something that is unfair can be reasonable.
Although delisting cannot take place if 10 per cent or more of shareholders vote against it, the reality is that it is difficult to get small retail investors to attend shareholder meetings if these are held in obscure and hard-to-reach areas. Inevitably, such deals go through and the voting process becomes a mere formality.
Small retail investors consequently have no choice but to accept the exit offer.
What would be fair and reasonable would be for an independent assessment of the break-up or book value of the company to be carried out, and for an exit offer that is close to that value to be made.
There has been a spate of delistings and current SGX regulations do not protect retail shareholders from being short-changed.
sana wrote: The independent financial adviser stated that the offer was "not fair" but "reasonable", and recommended that the directors approve the delisting.
I struggle to understand how something that is unfair can be reasonable.
David Lim Yoke Peng
Hi Sana, well said!
Equally puzzling is the fact that Synear keeps extending the delist offer 'cos it hasn't got the SGX-ST No Objection Confirmation yet. So what does this means if eventually it will not receive?
In the Synear delisting, I am also puzzled as to why a group of minority investors gave an undertaking to vote in favour of the delisting but not to accept the exit offer. This group could have made a difference in the vote against delisting.
Are they being offered a different exit price and, if so, would that be in accordance with the letter and spirit of the voluntary delisting rules?
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