Sias lends hand to dissenting holders of JSH shares

Singapore's investor watchdog is arranging for individual shareholders of Jardine Strategic Holdings (JSH) who oppose the acquisition by Jardine Matheson Holdings to connect with institutional investors so they can be collectively represented by Bermuda lawyers.

But this will be subject to collectively obtaining at least 300,000 shares or US$10 million (S$13.4 million) in value from such individual dissenting shareholders, said the Securities Investors Association (Singapore) or Sias in a statement on Thursday.

Sias chief executive David Gerald said the institutional investor who has joined individual shareholders in this action has two million shares; other institutional investors are still deliberating.

The lawyers will provide direct representation for each individual shareholder as a client.

However, to help defray the costs, they will charge only a pro-rata cost based on the shareholding. Investors will need to discuss the fees directly with the lawyers.

If JSH's fair value after appraisal by the Bermuda court is greater than the acquisition price of US$33 a share, Jardine Matheson must pay dissenting JSH shareholders the difference between the appraised value and the acquisition price within a month of the court's decision, Sias noted.

However, if the court values it at equal or lower than the acquisition price, dissenting JSH shareholders will be entitled only to the acquisition price.

Sias said that dissenting shareholders need to convert their shares from The Central Depository (CDP) into certificated form before they can enforce their legal rights to bring the matter to Bermuda.

According to the timetable, a depositor who wishes to exercise his dissenting rights should submit a request for withdrawal of securities to the CDP by 5pm on March 30.