The offer by Lyon Investments receives valid acceptances to acquire 92.3% of shares
[SINGAPORE] Shares of Sinarmas Land that are held by the public no longer make up 10 per cent of shares outstanding, following a privatisation offer receiving valid acceptances to acquire 92.3 per cent of shares.
Due to the Singapore Exchange’s (SGX) requirement for companies to ensure that at least 10 per cent of their total shares outstanding to be held in public hands, known as the free float requirement, Sinarmas Land’s shares may be suspended by the exchange, the company announced on Wednesday (Apr 23).
The offer, made by the Widjaja family-controlled Lyon Investments on Mar 27, sought to purchase shares of Sinarmas Land it does not own at S$0.31 apiece.
Already owning 70.3 per cent of the property development company’s shares, the offeror has received valid acceptances of about 22 per cent of total shares, the company said in the bourse filing. This brings shares owned, controlled or agreed to be acquired by the offeror to 92.3 per cent, the company said.
Following the announcement of the offer, the company’s shares soared 23.6 per cent or S$0.065 to S$0.34 the following day on Mar 28.
The offer price of S$0.31 represents a 12.7 per cent premium over Sinarmas Land’s last traded price of S$0.275 on Mar 24, prior to the announcement.
It also represents a premium of about 17.1, 5.6 and 14.6 per cent over the volume-weighted average price of the shares over the last one, three and 12-month periods, respectively.
However, the offer price is at a 73.9 per cent discount to Sinarmas Land’s net asset value of S$1.19 per share as at Jun 30, 2024.
The counter closed flat on Wednesday at S$0.325.
Copyright SPH Media. All rights reserved.
