Unlike the purchase of shares from the open market, it is common practice for cash distribution to be made two or so weeks after the shares have been cancelled in a capital-reduction exercise. In this case, Singapore Airlines included a 'top-up offer' with the capital-reduction exercise to allow shareholders with odd lots, as a result of the proportional share cancellation, to top up their shareholding to the next board lot (SIA 200). For shareholders' convenience, if they elect to accept the top-up offer, the amount due for the top-up shares is offset against the cash distribution for the shares cancelled.

There are necessary steps required, because the company needs to issue an offer document and give a period to allow shareholders to accept the top-up offer. The time required for payment of the cancelled shares to be made to shareholders is, therefore, a little longer than would be the case for a normal capital-reduction exercise.

We are sorry that this caused Mdm Cho some inconvenience. However, we hope shareholders will understand that this has allowed us to introduce a scheme to prevent them from having to pay more to trade in odd lots in the future by topping up now.

Stephen Forshaw
Vice-President, Public Affairs
Singapore Airlines