SGX agrees to let WBL Corp delist without EGM

A WBL Corporation's worker wears a protective gear at work. The Singapore Exchange (SGX) has agreed to let WBL Corporation delist from the bourse without having to hold an extraordinary general meeting (EGM) to obtain shareholders' approval for the a
A WBL Corporation's worker wears a protective gear at work. The Singapore Exchange (SGX) has agreed to let WBL Corporation delist from the bourse without having to hold an extraordinary general meeting (EGM) to obtain shareholders' approval for the action. -- FILE PHOTO: WBL CORPORATION

The Singapore Exchange (SGX) has agreed to let WBL Corporation delist from the bourse without having to hold an extraordinary general meeting (EGM) to obtain shareholders' approval for the action.

WBL, which was bought out by United Engineers (UE) last year, had requested a waiver from the requirement to hold an EGM as shareholders holding more than 90 per cent of the company's shares have undertaken to vote in favour of the delisting resolution.

Under SGX listing rules, a company must obtain approval from shareholders holding at least 75 per cent of its shares before it can delist.

This means that these shareholders would "be able to unilaterally decide the outcome of the EGM regardless of the votes of the minority stockholders of the company," WBL said in a filing to SGX on Monday.

"As such, the convening of an EGM will not prove to be of much benefit to the minority stockholders but would instead cause the company to incur unnecessary compliance costs."

In connection with the delisting, UE will make exit offers to acquire all of WBL's issued ordinary stock units. It will also acquire all outstanding 2.5 per cent convertible bonds due 10 June 2014 issued by WBL.

A circular about the delisting and exit offers will be despatched to stockholers and bondholers in due course, the company said in its statement.