Boustead Singapore seeks extension to provide exit offer details for Boustead Projects
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The offer in February 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.
PHOTO: BT FILE
Raphael Lim
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SINGAPORE – Boustead Singapore is seeking an extension from the Singapore Exchange Regulation (SGX RegCo) to allow it to provide details of its exit offer for Boustead Projects only after its first-half results have been released.
This comes a day after SGX RegCo issued a directive for the delisting of Boustead Projects,
In its notice of compliance, the front-line regulator also directed Boustead Projects and/or Boustead Singapore to make an exit offer to shareholders that is “fair and reasonable”, with the proposal to be provided within one month from Tuesday.
Boustead Singapore said in a bourse filing on Wednesday that both the company and Boustead Projects were required to announce their first-half results within 45 days from Sept 30, and it was “unable to provide an update at this juncture”.
It did not indicate the duration of extension required.
Boustead Singapore in February announced a voluntary unconditional general offer to privatise its real estate unit Boustead Projects.
The independent financial adviser (IFA), PrimePartners Corporate Finance, deemed the offer “not fair but reasonable”.
In its report, the IFA noted that the final offer price of 95 cents was not within its final estimated valuation range of between $1.17 and $1.38.
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 the company.
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 said in March that Boustead Projects must restore its free float after its shares are suspended at the close of the takeover offer by its parent company. Otherwise, Boustead Projects will be directed to delist and provide an exit offer that is deemed fair and reasonable by an IFA.
Under listing rules, exit offers in conjunction with voluntary delistings must not only be reasonable, but also fair. An offer is deemed fair if the price offered is equal to or greater than the value of the securities.
Boustead Projects was granted two extensions to explore options to comply with listing rules, but did not restore its free float by the Sept 26 deadline.
Mr David Gerald, president and CEO of the Securities Investors Association (Singapore), said on Tuesday that the association supported SGX RegCo’s actions.
“Some six months have elapsed, and there has been no response from the Boustead companies,” he noted.
Boustead Singapore shares rose 0.6 per cent to close at 85 cents on Thursday. THE BUSINESS TIMES
