Sias reminds Sunningdale shareholders to cast their votes

MINORITY shareholders of plastic-components supplier Sunningdale Precision have until 3pm on Wednesday to vote on an offer to take the company private.

Here is a recap of the salient points of the deal:

The offeror has said Sunningdale's customers are managing risk by diversifying their supply chains.

To respond to this shift, it says, Sunningdale will need to make significant long-term investments that will likely require substantial upfront cash, but may generate little near-term payoff.

The privatisation is therefore to gain flexibility to make such investments.

Thanks to objections from activist fund manager Quarz, the offeror has raised its offer price to S$1.65 a share. This is a 42.6 per cent premium over the volume-weighted average price of Sunningdale shares for the last year.

Shareholders may choose to receive a combination of cash and shares in the offeror. This option gives them the option to remain invested in Sunningdale.

The future of Sunningdale and its listing status are now at stake. Shareholders, whether for or against the deal, are urged to cast their vote by 3pm on Wednesday.

The writer is founder, president and chief executive of the Securities Investors Association (Singapore)