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Hyflux's offer for HyfluxShop entirely voluntary, says firm
HYFLUX'S chief executive officer, Olivia Lum, was not required to make an offer for shares in its consumer business, HyfluxShop, the firm said in a clarification of an earlier statement made on Feb 1.
The offer, which Ms Lum is going ahead with, is entirely voluntary, and is to provide an avenue for HyfluxShop shareholders to sell their unlisted shares without having to search for willing purchases.
Hyflux said this in a statement on Feb 12 to clarify its earlier announcement on Feb 1 regarding the ruling by the Securities Industry Council (SIC).
SIC has informed Hyflux that the purchase by Ms Lum would constitute an "offer", and as such, would require safeguards such as providing minority shareholders with sufficient time and information, including independent financial advice, to enable them to reach an informed decision on an offer.
The earlier announcement stated that controlling shareholder Ms Lum must make a mandatory offer for HyfluxShop, Hyflux's consumer business, after the completion of a dividend in specie distribution.
Contrary to the earlier statement, the Securities Industry Council (SIC) had not issued any verbal ruling on Jan 31 that Ms Lum is obliged to make an offer for HyfluxShop if the distribution goes through.
Instead, on Jan 31, the SIC had informed Hyflux that the controlling shareholder purchase as set out in the circular constituted an "offer" under the take-over code. Hence, it would need to be made in compliance with the take-over code.