Boustead Projects shares to be suspended as company loses free float
SHARES of Boustead Projects : AVM 0% are set to be suspended after Boustead Singapore : F9D 0% announced in a bourse filing on Monday (Mar 20) that it has acquired about 91.74 per cent of its shares as at 6 pm.
This leaves the public owning only about 8.3 per cent of shares. Under the Singapore Exchange (SGX) 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.
Once an issuer fails to meet that requirement, SGX may suspend its shares from trading, or give the issuer three months to raise the free float to at least 10 per cent, failing which it may be delisted.
Boustead Singapore, an engineering services provider, said in Monday’s filing that its intention has always been to privatise and delist its real estate subsidiary since the takeover offer was first announced on Feb 7.
If the trading of Boustead Projects’ shares is indeed suspended, Boustead Singapore said it will not take any action to lift the suspension.
The initial takeover offer of S$0.90 per share was increased to S$0.95 per share after criticism from investor advocacy group Securities Investors Association Singapore and analysts that the original offer was unattractive.
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Boustead Singapore’s shares closed at S$0.84 on Monday, falling 0.6 per cent or S$0.005, while shares of Boustead Projects closed at S$0.96, up 0.5 per cent or S$0.005.
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