Boustead granted extension to submit exit offer proposal for Boustead Projects by Nov 14

SINGAPORE – Engineering services company Boustead Singapore has been granted a 45-day extension by the Singapore Exchange Regulation (SGX RegCo) to submit an update on its exit offer proposal for Boustead Projects.

This puts the deadline at Nov 14, with the date falling 45 days from Sept 30, the end of the first half of its financial year ending March 31, 2024.

The extension is subject to two conditions set by SGX RegCo, Boustead Singapore said in a bourse filing on Tuesday.

First, the company has to provide a progress update on its compliance with the notice of compliance within two weeks of Tuesday. Second, the company has to disclose the reasons it is seeking the extension.

The notice of compliance, issued on Sept 26, had directed Boustead Projects to be delisted if its free float is not restored to at least 10 per cent on or before Sept 26. It was also asked to make a fair and reasonable exit offer to its shareholders.

Boustead Singapore said it will update shareholders on material developments on the exit offer proposal, when appropriate.

The company had in February announced a voluntary unconditional general offer to privatise its real estate unit Boustead Projects. The independent financial adviser (IFA), PrimePartners Corporate Finance, had deemed the offer “not fair but reasonable”.

At the close of the offer, Boustead Singapore and its concert parties owned or controlled about 95.5 per cent of the total number of shares in Boustead Projects. As less than 10 per cent of Boustead Projects shares were held by the public, the counter was suspended in March.

Boustead Singapore disclosed previously that it would not be able to avail itself of the powers of compulsory acquisition under the Companies Act.

Under Section 215(1) of the Companies Act, an offeror who acquires at least 90 per cent of the total number of shares – other than those already held by the offeror, its related corporations or nominees – will be entitled to exercise the right to compulsorily acquire all the shares from shareholders who have not accepted the offer.

The offer for Boustead Projects did not extend to 19.28 per cent of the shares that were held through nominees by the chairman and chief executive of Boustead Singapore, Mr Wong Fong Fui.

SGX RegCo thus said in March that Boustead Projects must restore its free float or delist and provide an exit offer to its shareholders that is deemed fair and reasonable by an IFA.

THE BUSINESS TIMES