SINGAPORE - Singapore Exchange Regulation (SGX RegCo) issued a directive on Tuesday for the delisting of Boustead Projects, as the issuer had not ensured that at least 10 per cent of the total number of issued shares are held by the public.
In its notice of compliance, the front-line regulator also directed Boustead Projects and/or Boustead Singapore to make an exit offer to the shareholders that is “fair and reasonable”, with the proposal to be provided within one month from Tuesday.
Boustead Singapore in February announced a voluntary unconditional general offer to privatise its real estate unit, Boustead Projects. The initial offer price was 90 cents per share, and this was subsequently raised to 95 cents per share on Feb 22.
The independent financial adviser, PrimePartners Corporate Finance, opined that the offer was “not fair but reasonable”.
At the close of the offer, Boustead Singapore and its concert parties owned or controlled an aggregate of 299.2 million shares, representing approximately 95.5 per cent of the total number of shares in the company.
However, Boustead Singapore disclosed it would not be able to avail itself to the powers of compulsory acquisition under the Companies Act. As less than 10 per cent of Boustead Project shares were held by the public, the counter was suspended in March.
Boustead Projects was granted two extensions to explore options to comply with listing rules, but did not restore its free float by the Sept 26 deadline, leading to the notice of compliance and delisting.
In a statement to The Straits Times, Mr David Gerald, president of the Securities Investors Association (Singapore), or Sias, said it supported SGX RegCo’s move.
“Boustead Projects was directed to comply with free float requirement or be delisted. Boustead Holdings was directed to make a fair and reasonable exit offer, as the free float of Boustead Projects has not been restored.
“Some six months have elapsed and there has been no response from the Boustead companies,” he said, adding: “Sias supports the SGX action.”
Shares of Boustead Singapore rose 1.2 per cent on Tuesday to 86.5 cents, before the announcement. Boustead Projects last traded at 95.5 cents in March. THE BUSINESS TIMES
