Sias organising representation for Jardine Strategic shareholders in Bermuda court

Sias chief executive David Gerald said that the institutional investor who has so far agreed to join individual shareholders in this action has two million shares. PHOTO: ST FILE

SINGAPORE (THE BUSINESS TIMES) - The Securities Investors Association (Singapore), or Sias, is arranging for individual shareholders of Jardine Strategic Holdings who are against the acquisition by Jardine Matheson Holdings to connect with institutional shareholders to be collectively represented by Bermuda lawyers.

However, 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 Sias in a statement on Thursday.

Sias chief executive David Gerald told The Business Times that the institutional investor who has so far agreed to join 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 shareholding. Shareholders will need to discuss the fees directly with the lawyers.

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

However, should the court value it to be equal or lower than the acquisition price, the dissenting Jardine Strategic shareholders will be entitled only to the acquisition price.

Dissenters can register on this platform by 5pm on March 30.

Sias stated that dissenting shareholders need to convert their shares from The Central Depository (CDP) into certificated form before they are able to enforce their legal rights to bring the matter to Bermuda, whose laws apply to this acquisition.

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.

The counter rose 1.06 per cent to US$33.30 on Thursday.

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