SINGAPORE (THE BUSINESS TIMES) - Singapore Reinsurance on Tuesday (April 20) said offeror Fairfax Asia does not intend to increase its 35.35 cents offer price "under any circumstances whatsoever".

Fairfax Asia is making a cash offer for Singapore Reinsurance's 71.82 per cent stakes that it and its concert parties do not own. The offer is conditional on them garnering more than 50 per cent stakes.

As at 6pm on Tuesday, the number of shares owned, controlled or agreed to be acquired by Fairfax Asia and its concert parties, including public acceptances, stood at 49.84 per cent. The offer remains open for acceptances until May 4, 5.30pm.

Earlier this month, California-based Dalton Investments provided an irrevocable undertaking in favour of Fairfax Asia's cash offer. The investment manager has discretion and authority over the sale of about 5.09 per cent of the total number of Singapore Reinsurance's issued shares, as at April 2.

The offer price of 35.35 cents represents a premium of 20.6 per cent over the volume-weighted average price per share for both the one-month and three-month periods, and a premium of 21.9 per cent and 27.6 per cent over that for the six-month and 12-month periods respectively up to and including March 18, the last full trading day before the offer announcement. The counter closed at 29.5 cents on that date.

Singapore Reinsurance is principally engaged in the business of underwriting general reinsurance and also involved in investment activities of its non-reinsurance funds.

The counter has traded below the offer price for the past 10 years up to March 18, Fairfax Asia said in its offer announcement on March 19.

Fairfax Asia intends to delist Singapore Reinsurance after obtaining more than 90 per cent of the latter's shares. The company, a subsidiary of Fairfax Financial Holdings, is incorporated in Barbados.

Shares of Singapore Reinsurance last traded at 35 cents on April 14.