Sias calls on Vard minority shareholders to show up at EGM and vote on proposed delisting

A Vard shipyard in Norway.
A Vard shipyard in Norway.PHOTO: VARD HOLDINGS

SINGAPORE - The Securities Investors Association (Singapore) on Thursday (April 26) urged minority shareholders of Vard Holdings to turn up at the company's upcoming general meeting, saying that those who want to block a delisting resolution can still do so if enough of them vote against it.

"Sias has received feedback from minority shareholders of Vard, their disappointment with respect to the offer by Fincantieri to delist and privatise Vard," the advocacy group commonly known as Sias said in a statement.

"The offer of 25 cents per share, shareholders feel, does not reflect the real value of the company and is below net asset value," it added.

Vard's majority shareholder, Fincantieri, put up a bid to privatise the group in a delisting proposal that was announced on Nov 13, 2017. It currently owns about 83 per cent of Vard's shares.

For Vard to remain listed, 10 per cent or more of the total number of shares held by the shareholders will have to vote against the resolution.

CIMB, the independent financial adviser appointed by the shipbuilder's independent directors, said in a report on April 13 that the offer is "not fair but reasonable".

Its advice to Vard's independent directors was to recommend that shareholders accept the exit offer or sell their shares on the open market. The recommendation was accepted by the independent directors.

Vard's extraordinary general meeting will be held at 1pm on April 30.

Its shares were trading at 25 cents as at 1.24pm.