Sim Lian founder in bid to buy company
The founder of Sim Lian Group (SLG) is leading an offer to buy the Singapore-listed real estate firm and delist it, in a deal that values the company at $1.09 billion.
Coronation 3G, an investment holding company led by Sim Lian founder and executive chairman Kuik Ah Han, has offered $1.08 for each share, representing a premium of 15 per cent on the stock's last closing price of 94 cents.
Coronation 3G has secured irrevocable undertakings representing about 80 per cent of the issued shares from Mr Kuik's Sim Lian Holdings and individuals from the Kuik family, it said in a statement.
"The shares have not traded at or above the offer price since its listing in 2000. Coronation 3G believes that the offer presents SLG shareholders with a compelling cash exit opportunity given the illiquidity of its shares," it said.
OCBC Bank is the financial adviser to Coronation 3G in the offer.
RBI holds steady on interest rate
India's central bank governor Raghuram Rajan yesterday kept the repo rate unchanged at 6.5 per cent at his final policy review after inflation hit a nearly two-year high, but said the policy stance remains "accommodative".
The decision had been widely expected after consumer inflation accelerated to 5.77 per cent in June, near the top of the Reserve Bank of India's (RBI) range of 2 per cent to 6 per cent, and above its target of 5 per cent by March next year.
The much admired former International Monetary Fund chief economist is due to step down on Sept 4 after a three-year term to return to academia.
Mr Rajan said he expected "upside" risks to his March inflation target, citing a hike this year in the salaries of millions of government employees and sticky core inflation, which excludes food and fuel. "It is appropriate for the Reserve Bank to keep the policy repo rate unchanged at this juncture, while awaiting space for policy action," he said in a statement.
India's benchmark 10-year bond fell two points to 7.15 per cent from levels before the decision.