Boustead Projects asks SGX for 3 months more to restore free float

BOUSTEAD Projects has applied to the Singapore Exchange Regulation (SGX RegCo) for a three-month extension to restore its free float, it said on Tuesday (Apr 4).

The real-estate solutions provider said that it requested for the extension from Mar 27 – the day Boustead Singapore’s voluntary unconditional cash offer for Boustead Projects closed. 

Boustead Singapore has also informed Boustead Projects that it is “exploring various options”.

Engineering services provider Boustead Singapore had garnered 95.5 per cent in shareholding interest at the close of the takeover offer. Under SGX’s free-float requirement, an issuer must ensure at least 10 per cent of its total number of issued shares are held by the public. 

If it is unable to do so, SGX may suspend its shares from trading, or give the issuer three months to ensure free float, and the company may be delisted.

SGX RegCo said last month that Boustead Projects is obliged to restore its free float, failing which it can be directed to delist and provide an exit offer which is deemed both fair and reasonable by an independent financial adviser. 

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In February, Boustead Singapore announced a privatisation bid for Boustead Projects at S$0.90 per share. Analysts noted that the offer undervalued Boustead Projects and favoured Boustead Singapore more. 

Boustead Singapore later raised its offer to S$0.95 per share, after Securities Investors Association (Singapore), or Sias, deemed the discount to asset value “simply too large to ignore”. 

The offer was also deemed “not fair” but reasonable by an independent financial adviser. Sias advised shareholders to reject the offer. 

SEE ALSO

Boustead Singapore garners 95.5% of real estate unit Boustead Projects at offer close

Boustead Projects requested for the trading of its shares to be suspended from Mar 28 after the privatisation offer closed the day before. Shares of Boustead Projects last traded at S$0.955 on Mar 27. 

On Mar 27, Boustead Projects raised a concern that there are limited options available to its board of directors to restore the free float, which are, namely, to request that Boustead Singapore sell down its shares, or for Boustead Projects to issue new shares to public shareholders.

Any proposal which involves the sell-down of Boustead Singapore’s shareholding would be contrary to its stated intentions, Boustead Projects noted. 

Boustead Projects said on Tuesday that when necessary and appropriate, it will update shareholders on the restoration of the free float or if it requests for its shares to resume trading.