Vard halts trading on Tuesday ahead of EGM delisting vote

File photo of Vard Holdings’ fish trawler. The shipbuilder has halted trading in its shares before shareholders vote on pursuing a voluntary delisting of the company, on July 24, 2018.
File photo of Vard Holdings’ fish trawler. The shipbuilder has halted trading in its shares before shareholders vote on pursuing a voluntary delisting of the company, on July 24, 2018.PHOTO: VARD HOLDINGS

SINGAPORE - Shipbuilder Vard Holdings halted trading in its shares on Tuesday (July 24) ahead of its 1pm extraordinary general meeting (EGM), where shareholders will vote on whether to pursue a voluntary delisting of the company.

Vard said in a separate announcement on Tuesday morning that Fincantieri Oil & Gas, which is proposing to take the company private, acquired another 142,500 of Vard's shares at S$0.25 apiece on Monday.

As at 5pm on Monday, Fincantieri's effective control of the company, comprising shares owned, controlled or agreed to be acquired by Finacantieri, is 83.72 per cent.

Under the Rules of the Listing Manual, the delisting resolution will not pass if it is voted against by 10 per cent or more of the total number of issued shares held by shareholders present and voting, on a poll, either in person or by proxy at an EGM.

In such a scenario, the company stays listed; earlier acceptances will be cancelled, and the shares will be made available for trading.

At a previous EGM on April 30, shareholders including Fincantieri voted in favour of the delisting offer, but the meeting ended with retail investors unhappy with errors in the circular distributed to shareholders and with the way the meeting was conducted.

The Singapore Exchange's regulation unit then ordered Vard to hold a new EGM, and the exit offer was extended from July 20 to Aug 7.