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

THE voluntary unconditional cash offer for real estate player Boustead Projects : AVM 0% closed on Monday (Mar 27), with its offeror and parent company Boustead Singapore : F9D 0% garnering 95.5 per cent in shareholding interest.

As at 5.30pm on Monday, the total number of shares owned, controlled or agreed to be acquired by Boustead Singapore and its concert parties, as well as valid acceptances of the offer, stood at 299.2 million shares, or 95.5 per cent of the total number of shares.

The disclosure came after Boustead Projects’ shares closed flat at S$0.955 on Monday, slightly above the S$0.95 offer price. The company will request that trading in its shares be suspended from Tuesday’s market open.

Boustead Singapore’s offer for its real estate unit was deemed “not fair” but reasonable by an independent financial adviser. Subsequently, on Mar 22, SGX Regco told Boustead Projects that it must restore its free float after its shares are suspended at the close of the takeover offer. Otherwise, Boustead Projects would be directed to delist and provide an exit offer which is deemed fair and reasonable.

“There are limited options available to the board to restore the free float in the shares to at least 10 per cent, which are, namely, to request the offeror to sell down its shares, or for the company to issue new shares to public shareholders,” Boustead Projects said in the Monday filing.

It noted that any proposal which involves the sell-down of Boustead Singapore’s shareholding would be contrary to the offeror’s stated intentions. Meanwhile, the issue of new shares will require the offeror to vote in favour of the relevant resolutions, and “this is not within the control of the company or the board”, the company added.

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“It also requires the company to find investors who are prepared to subscribe for new shares in the company, in circumstances where it is clear that the offeror intends to privatise the company,” Boustead Projects said.

Boustead Singapore first announced its intention to take its real estate unit private back in February, at an offer price of S$0.90 per share, which analysts flagged was below the company’s net asset value.

The offer price was subsequently raised to S$0.95 per share, but still drew flak from the Securities Investors Association Singapore.