Challenger Technologies gives indicative timeline for delisting

Electronics retailer Challenger Technologies expects to send its delisting circular and exit offer to shareholders on June 12.

The announcement comes after investors criticised Challenger at its annual general meeting on April 29 for not providing a buyout timeline, The Straits Times reported.

The company now expects June 25 to be the last date to lodge proxy forms for the extraordinary general meeting (EGM).

This is when a resolution will need to be passed to approve the delisting from the Singapore Exchange (SGX). The EGM will likely be held on June 27, said Challenger in an SGX filing on Monday.

If the EGM resolution is passed, the company will be delisted irrespective of the number of acceptances received for the exit offer.

The closing date for the exit offer is expected to be July 11, although a different date might be announced by the offeror, Digileap Capital.

Challenger said on Monday it is still obtaining a response from the SGX for its application to delist and so the timetable may change.

In March, Challenger announced that Digileap Capital is making a cash exit offer for all Challenger shares at 56 cents apiece. It said delisting made sense given that it has not needed to raise cash from capital markets, while going private would bring more flexibility and better resource management.

In March, Challenger announced that Digileap Capital is making a cash exit offer for all Challenger shares at 56 cents apiece.

It said delisting made sense given that it has not needed to raise cash from capital markets, while going private would bring more flexibility and better resource management.

Digileap Capital is 70 per cent owned by the Loo family and 30 per cent by Dymon Asia Private Equity.

Minority shareholder Pangolin Investment Management pressed for a higher offer price and dividend payout at the annual general meeting. Pangolin, which owns 2.94 per cent of Challenger, released a report in March saying that Digileap's offer price was too low and unfair for minority shareholders.

It also said that Challenger should be valued by its cash flow to shareholders, in which case the fair value of the shares should be at least $1.15, not the 56 cents offered by Digileap.

Challenger shares closed flat at 54.5 cents yesterday.

A version of this article appeared in the print edition of The Straits Times on May 29, 2019, with the headline 'Challenger Technologies gives indicative timeline for delisting'. Print Edition | Subscribe