The unprecedented withdrawal of the cash bid for Jade Technologies has thrown up some important issues that need to be addressed in the interests of the investing public.

Some investors bought into Jade shares in anticipation that the takeover bid, which had been given approval to proceed by the exchange and also had a reputable local bank as the financial adviser, would be a done deal.

Instead, they lost money when the share price crashed after the offer was withdrawn. The amount involved may seem piffling and inconsequential to SGX but an important point of principle is involved.

Who do these investors look to for recourse or recompense? Could they apply to the SGX for compensation to be paid out of the 'Fidelity Fund' which the exchange manages and administers and is intended to protect investors?

The circumstances surrounding Jade seem well-suited enough to be applied here.

In accepting general offers, shareholders are required to sign irrevocable acceptances.

Surely they deserve some protection in exchange for this undertaking?

The SGX should provide the safeguards.

Narayana Narayana