Boustead Projects must restore free float, or make ‘fair and reasonable’ exit offer: SGX Regco
Janice Lim
THE Singapore Exchange Regulation (SGX Regco) said on Wednesday (Mar 22) that Boustead Projects must restore its free float after its shares are suspended at the close of the takeover offer by its parent company Boustead Singapore .
Otherwise, Boustead Projects would be directed to delist and provide an exit offer which is deemed fair and reasonable by an independent financial adviser, said the regulatory arm of Singapore’s bourse operator in the filing.
As at 6pm on Mar 21, Boustead Singapore had acquired 92.5 per cent of Boustead Project’s shares.
This leaves the public owning only about 7.5 per cent of shares. Under SGX’s free-float requirement, an issuer must ensure that at least 10 per cent of the total number of issued shares are held by the public.
Boustead Singapore’s offer closes on Monday (Mar 27).
The engineering services provider had announced on Feb 7 that it intended to privatise and delist its real estate subsidiary by buying over the company.
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Shares of Boustead Projects closed flat at S$0.95 on Wednesday; those of Boustead Singapore rose 0.6 per cent or S$0.005 to end at S$0.85.
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