SINGAPORE Land on Wednesday announced a proposed selected capital reduction of about S$12 million to cancel shares held by minority shareholders - that is, shareholders other than Singapore-listed UIC - at S$9.20 apiece. This would apply to about 0.3 per cent of the total share capital.
UIC currently owns 99.7 per cent of the company, following its cash offer for Singapore Land in 2014. Singapore Land was subsequently delisted.
The capital reduction's offer price at S$9.20 per share represents effectively the same amount that former shareholders received during the delisting offer. The offer then was S$9.40, but that took into account a dividend of 20 Singapore cents per share that would have otherwise been paid to shareholders.
The directors of the company intend to propose a dividend of 20 Singapore cents per share for the fiscal year ended Dec 31, 2015. If the capital reduction exercise goes through, minority shareholders who have had their shares cancelled will also receive this dividend. This means that they will, in aggregate, receive S$9.40 per share, as well.
"The selective capital reduction is an internal corporate exercise that is proposed by the company for the participating shareholders," said Singapore Land in a regulatory filing. "Following the delisting, it has become difficult for the participating shareholders to realise their investment in the shares given the lack of a public market."
Minority shareholders will vote on the capital reduction exercise at an extraordinary general meeting.