Delisting plans by Golden Energy, Boustead Projects a test of SGX’s rules, stated views
SGX’s letter to Golden Energy is a template of sorts for proactively responding to unsatisfactory delisting proposals
THIS column highlighted three weeks ago questions raised by a shareholder of Golden Energy and Resources (Gear) about the manner in which the company’s appointed independent financial adviser (IFA) had been asked to opine on its proposed break-up and delisting.
Four days later, the Singapore Exchange (SGX) read the riot act to Gear’s board and appointed advisers. In a letter dated Feb 24, SGX reminded the company to ensure its IFA’s opinion states specifically whether the “all cash” consideration of S$0.846 is fair and reasonable.
SGX also instructed Gear to ensure its IFA – a firm called W Capital Markets – takes into account material changes to the traded price of its component assets. This appears to be a reference to the soaring market value of Australia-listed Stanmore Resources, in which Gear holds a 64 per cent stake.
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